Abstract:People generally refer to equipment with micron-level precision in manufacturing processes as precision equipment, while equipment meeting requirements beyond the micron level (nanometer-level) is termed ultra-precision equipment. Ultra-precision equipment serves as the foundation of advanced manufacturing today and is also a critical component of several high-tech industries, such as integrated circuits, displays, aerospace, instrumentation, and high-end machine tools. The level of ultra-precision equipment in these industries has a decisive impact on their development. Ultra-precision equipment is also the crystallization of modern scientific, technological, and engineering practices, and its development is a historically iterative process, requiring the interplay of demanddriven factors, technological advancements, and the accumulation of engineers’ know-how. To this day, the ultra-precision equipment industry remains largely monopolized by a few enterprises in developed countries. The relative weakness of the ultra-precision equipment industry is one of the key reasons why China, the world’s largest manufacturing nation, has not become a manufacturing powerhouse yet. This study analyzes the current state of China’s ultra-precision equipment industry, identifies major challenges, and examines the root causes of these issues. In the face of rapidly changing internal and external environments, it proposes specific recommendations to seize opportunities and address challenges.