With highly development, China's valve industry are facing with good developing opportunity. However, China can only manufacture low pressure valve to meet the demands of international market. High pressure valve still needs to be imported from abroad. For good macroeconomic situation, the number of imported and exported valves has been increased. But the total revenues of China's valve industry is decreased for the aggravating competition in international market. Small scale, low specialization and other factors restrict China's valve industry developing.

 

Malignant competition

Depression of the whole valve industry causes valve products to fall behind. In sharp competition, some enterprise earn revenues at the expense of sacrificing others' interest, providing shoddy products and disturbing normal developing.

 

Low starting point & small scale

Currently, China has more than 5000 valve manufacturers. However, only 7 manufacturers earn more than 50 million total revenues. 3 manufacturers has more than 100 million total revenues. None of manufacturers surpasses 200 million. Those small manufacturers cannot compete with famous manufacturers in international market for poor economic foundation, weak competitiveness.

 

Low technology content

China's valve industry can provide dozens kinds of products. Although those products assist domestic economic construction, they are with low technology content and at less developed level.

 

Unique distribution channel

Now China's valve industry has excess production capacity - about 40% production capacity being emptied. Homogenization of distribution channel and saturation of products increase sales costs and decreases profit.

 

Poor management

China's valve manufacturers management is poor and short of talents. For this, besides importing advanced equipments and technologies and strengthening management, manufacturers also should focus on fostering talents.