Influencing factors that jeopardize the development trend of control valve industry (control valves are also known as regulating valves, usually electric butterfly valves, self-operated regulating valves, self-operated regulating valves, electric valves/disc valves, pneumatic ball/disc valves, etc.)
1. Government encouragement and preferential policies for foreign-funded enterprises.
Reform and development so far, the whole country of China for the introduction of foreign investment, are the foreign-funded enterprises launched a corresponding preferential policies. The release of preferential policies for foreign companies to invest in Chinese projects has a great lure, mainly because since China's reform and opening up, the political and metallurgical has been relatively stable, and the legal construction gradually towards sound, the key point is that China's human capital is cost-effective, low-cost manufacturing. China is a vast country, and the preferential policies vary from place to place. Some simplify the procedures, some tax exemptions. Throughout the entire liquid-controlled solenoid control valve industry, generally also located in the factory in the more prosperous areas of economic development, mainly because, control valve factories are all assembled factories, many components are processed in the country. And manufacturing developed geographic areas, but also more prosperous economic regions, such as Beijing, Tianjin, Shanghai, Jiangsu and other coastal cities.
2. Adjustment of import tariffs.
Hydraulic pressure control valves belong to the instrument panel industry, not a government-protected industry, along with China's entry into the WTO, the control valve import tariffs are still gradually reduced, the reduction of import tariffs, will eventually cause a reduction in the price of imported brands of control valves, the Chinese brand of control valves lead to impactful. At this stage, the famous control valves are almost all imported brands, and with the acceleration of the industrialization of such imported brand goods, the vast majority of components in foreign production and manufacturing, critical components imported from abroad, and import taxes are very low, so that the product cost will gradually reduce, will increasingly have a competitive advantage.
3. Government industrial policy.
For the control valve industry chain, the government has basically no control over the rapid development of the industry, almost completely according to the economic laws to develop. Each well-known brand in the market for fierce competition. Changes in government industrial policy related to control valves, but the control valve industry's rapid development has a great impact. For example, the power engineering industry, petrochemical industry, the change in government industrial policy, the two-way electromagnetic control valve market is very great harm. Free overseas larger petrochemical groups in China after the investment, many large group companies such as Germany BASF, Shell Motor Oil, etc. increased investment in China, promoting the development of the control valve market.