On July 6, 2026, Chinese media outlet TMTPOST published an article titled "Japanese Machine Tools Are Starting to Lose to China's Provincial Cities." It reported that Tengzhou City, Shandong Province, is establishing a world-class position in the machine tool sector through a robust industrial cluster and the integration of AI technology.

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The article introduced an example where a Vietnamese factory owner chose an inexpensive Tengzhou-made machine tool, priced at a unit cost of over 100,000 yuan (1 yuan = approximately 24 yen), which is about one-third the price of Japanese brands. It stated that Japanese products, long popular in Southeast Asian factories, are gradually being replaced by Tengzhou-made ones, causing a sense of urgency to spread throughout Japan's machine tool industry.

Furthermore, it was introduced that in Tengzhou City, a small county-level city in Shandong Province, over 400 companies have gathered to produce more than 200,000 machine tools annually, making it the "Capital of China's Small and Medium Machine Tools," holding an 80% share of China's small and medium-sized drill and milling machines.

It also pointed out that Tengzhou's strength is not merely a low-price strategy but is backed by advanced technical capabilities. Local company Weida Seiko achieved an accuracy of 0.003 millimeters with its 5-axis simultaneous machining center, and Qingluan Fuxing developed the world's first mass-produced AI machine tool, which has been introduced to major automotive battery manufacturer Contemporary Amperex Technology Co. Limited (CATL) and Germany's Volkswagen.

The article explained the background of the machine tool industry's development in Tengzhou, stating that it originated from Lunan Machine Tool, established in 1952, and engineers who became independent from it nurtured key companies. It reported that currently, a resilient supply chain ecosystem, like an "army of ants," has been formed where 80% of parts can be sourced within a 5-kilometer radius.

Furthermore, it was evaluated that even amidst fierce industry restructuring where major machine tool manufacturers in Shenyang and Dalian, Liaoning Province, were driven to bankruptcy, Tengzhou's group of companies survived through a structure that diversified risks and complemented each other, becoming a major driving force for China to surpass Germany and claim the top global share in machine tool exports by 2025.

The article mentioned that Tengzhou is the hometown of Lu Ban, an ancient master craftsman, and reported that the latest technological innovations are progressing locally, where traditional craftsmanship and experience are being algorithmized by AI, enabling machines to have "active thinking." (Edited and translated by Kawashiri)