In recent years, China's valves industry has grown at a high speed. Sales volume increased substantially. In 2013, the total import-export volume of China's valves industry reached to USD 241 billions, a increase of 28.2% from the same time last year. The total export is USD 224 billions, increased by 29.3% and total import is USD 201.34 billions, increased by 27% from the same time last year. However, some problem still exist in valves industry which need to be be focused.

 

The following problems should be paid close attention to:

 

1.Price war cause manufacturers cannot survive in the competition. The number of manufacturers is so large that the competition is quite fierce. Price war has already been regular. Most of manufacturers increase market share through lowering the price of product. Long-term price war result to low profit. Valves manufacturer can only maintain regular producing. It is impossible to make profit. Sales volume is increasing constantly while the sales total and profit is decreasing.

 

2.China's valves manufacturers have the limitation of technology. China's valves manufacturers mainly concentrate in middle-low-end products, lacking of core technology. Most of manufacturers produce general valves, causing homogenization exists in products. Similar products exacerbate the competition between manufacturers. Currently, valves manufactured in China has some problems, such as outleakage,  low quality and short life. The technology of products still stays on the level of the beginning of 1980's. Key components cannot be manufactured by self, which still need to be imported.

 

3.Exchange rate risk has great influence on export profit of valves. To avoid the price war between domestic manufacturers, many corporation acquire certain production space by exporting to abroad. But exporting is not effective solution to the problem existing in China's valves industry. Although export volume seems to be quite large, strategy of price war exaggerating malignant competition is still utilized by corporations. In export transaction, USD is usually used to settle accounts. Exchange rate risk caused by revaluing of RMB make valves manufacturers miserable. 

 

China's valves manufacturers are family-run workshop. Products manufactured by them have low quality and have great gap compared with foreign products. At present, export are concentrating in small international markets, such as Ethiopia, Iran and Iraq. Those markets have small scales. Decision process relies on price completely and profit has limitation. For further developing, key point is increasing level of technology to manufacture products which have own core technology, instead of copy. Only high quality, diverse valve can enter into high-end international market so that make large export profit.