External favorable factors promote the healthy development of Japanese machine tool foundry industry

According to relevant media reports, the Japanese machine tool casting industry originated in the late 19th century. In 1956, the Japanese government passed the 'Special Measures Act' to promote the development of its domestic machinery industry. The Act creates an internationally competitive machine tool foundry industry by setting priorities in capital lending procedures, regulating import licensing, and providing tax incentives. In addition, Japan's Ministry of International Trade and Industry (MITI) protects domestic industries by setting quotas and tariffs on imported machine tools. Based on a comparative study of the machine tool manufacturing industries in the United States, Japan, and Germany, some scholars have proposed that 'Japan uses industrial policy to correct market deficiencies and support companies that pursue long-term strategies, and ultimately successfully achieve their development goals.' Obviously, the favorable external environment created by the supportive industrial policy has played a key role in the rise of the Japanese machine tool casting industry. It can be seen that the positive external environment has promoted the great development of the Japanese machine tool casting industry. This also reminds other domestic foundry industries that the foundry industry must always grasp the external environment in order to facilitate the better development of the industry.