Research on the Optimization of Internal Control Process for Private Machinery Manufacturing Firms under the New Normal of the Economy

Abstract

China's economy has entered a new normal characterized by a transformation in the international economic structure and intensified trade frictions. Domestically, industrial upgrading and increased competition are also evident. These changes pose significant challenges to the reform and development of China's manufacturing industry. As a pillar industry of the national economy, machinery manufacturing is crucial for the country's economic development. However, under this new normal, which is marked by both opportunities and challenges, the machinery manufacturing industry faces a more severe market competition and complex risks. Private machinery manufacturing firms, in particular, lack direct government resource support and are more reliant on international trade compared to state-owned enterprises. This makes them more vulnerable to external environmental changes. In terms of internal management, private machinery manufacturing firms in China face numerous issues in their internal control systems, such as widespread family-style management, outdated internal control concepts, and formalistic internal supervision. These problems limit the development space of private machinery manufacturing firms in the new economic environment. Therefore, establishing an effective internal control system to identify potential risks and problems in the business process, and to take measures to reduce losses, has become an urgent task for the internal management upgrade of private machinery manufacturing firms. This study explores the current status of internal control in private machinery manufacturing firms, identifies the deficiencies in the internal control process, analyzes the causes of these deficiencies under the new normal, and proposes targeted improvement suggestions to enhance management efficiency and promote sustainable development.