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Although China currently has a good number of heavy machinery business, but except for a handful of companies Sany and Shanghai Zhenhua Port Machinery, etc., few international competitiveness of the company. How to seize the opportunity of the transition of Chinas industrialization, creating advantage, and thus form the core competitiveness, is placed in each of a Chinese heavy machinery industry entrepreneurs in front of an important issue. Reform and opening up, Chinese university graduates represented a serious lack of intellectual talent, only with not much technical content of labor-intensive industries to bring the whole economy to take off. With a low factor costs (including land, raw materials, energy, labor, etc.) to environmental overdraft expense, creating a low-cost manufacturing advantage, Chinese companies to lose ground in the international arena. Today, the era of low-cost elements are gone, peoples awareness of environmental protection has become increasingly intense, low-cost manufacturing advantage can not be sustained, while at the same time, Chinas personnel structure has undergone enormous changes, university graduates the number of record highs in 2008 reached 559 million, ranking first in the world, the employment pressure is very large, college students have a downward trend in wages; on the contrary, ordinary workers because of over-development and the relative lack of labor-intensive industries in recent years, the labor shortage is proof. Faced with the above economic background, Chinese heavy industry how the elements of the transfer advantages obtained by the new competitive advantage? We think China is necessary heavy machinery companies take full advantage of the opportunity to surplus and cheap Chinese college students in research and development, services, marketing and other aspects build the core strengths, to achieve the transformation from low-cost manufacturing to low-cost R & D and services. Opened the era of low-cost R & D and service marks Chinese enterprises rely on technology, performance and service competitive era begins. In this paper, Sany and Shanghai Zhenhua Port Machinery to illustrate how Chinese companies to research and development and service advantages to win the international competition victory. R & D upgrade: build the core technology, a product development platform Sany had only to do a diamond mill small private enterprises, faced with technological blockade International Machinery giant Sany well aware that we must rely on Chinas machinery abundant talent pool and take the road of independent research. First, Sany stimulate technological innovation in the institutional awareness of employees, by creating an atmosphere of technological innovation, giving employees the opportunity to make mistakes, to provide technical innovations in the treatment of material incentives, compensation, equity incentive, proposed R & D in the industry the ranks of the first to create a group of millionaires, thus attracting a large number of outstanding research and development personnel to join. Secondly, very willing to invest in research and development, adhere to the 5% annual sales income of investment in technology and innovation, is more than three times the industry average. Trinity on the patent and utility model patent applications were twice in the same industry in the second Zoomlion concrete machinery in the field have a real core technology. In concrete machinery core technology, product development will expand to Sany excavators, cranes and concrete mixer truck and other areas, the formation of advanced product development platform. Its R & D 66 m long arm pump and a series of products, the world leader, with strong competitiveness. (Source: China Machinery Network)