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Jiangsu Chenggong Valve Technology Co.,Ltd

We are professionally engaged in the valve design, manufacture and installation.

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Factors Affecting The Development Of Control Valve Industry

- 2020-06-18 11:12-

The factors that affect the development of control valve industry (control valve, also known as regulating valve, mainly electric regulating valve, pneumatic control valve, self-regulating valve, electric ball valve/butterfly valve, pneumatic ball valve/butterfly valve, etc.):

1. Encouragement and preferential policies of the state to foreign-invested enterprises: 

Since the reform and development, all over the country to attract foreign investment, foreign-funded enterprises have introduced corresponding preferential policies. The introduction of preferential policies for foreign companies in China's investment has a great attraction, because of China's reform and opening-up, the political has been relatively stable, and the legal construction gradually to improve, the most important point is that China's labor cheap, low production costs. China has a vast territory, and the preferential policies of different regions are not the same. Some simplified procedures, some tax relief. Throughout the control valve industry, the factory is generally built in the economically more developed areas, this is because the control valve factory are assembly plants, many components are processed in the country.

And the developed area of processing industry, but also the economically developed areas, such as Beijing, Tianjin, Shanghai, Jiangsu and other coastal areas.

2. Adjustment of tariffs: 

Control valve belongs to the instrument industry, does not belong to the state's key protection industry, with China's entry into the WTO, control valve tariffs are gradually falling, the tariff decline, will lead to import brand control valve price drop, the domestic brand control valve impact.

At present, the well-known control valves are almost all imported brands, and with these imported brand product localization process accelerated, most of the components in the domestic production, key components imported from abroad, and import tariffs are very low, so that the production costs will gradually reduce, will become increasingly competitive advantage.

3. Industrial Policy: 

For the control valve industry, the state has almost no restrictions on the development of the industry, almost completely according to market law to develop. Each brand in the market to carry out fierce competition. The changes in industrial policy related to control valves have a great impact on the development of the control valve industry. For example, the power industry, petrochemical industry policy changes in the control valve market is very large. After the country opened up foreign large petrochemical group investment in China, many large groups such as BASF, Shell and other increased investment in China, led the development of the control valve market.

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