The “2012–2016 China Valve and Plug Manufacturing Industry Development Prospects and Investment Forecast Analysis Report” indicates that, since 2012, the path toward domestic production of high-end valves has become exceedingly challenging. At present, basic components have emerged as a bottleneck restricting the advancement of China’s manufacturing sector toward higher value-added, high-end development, underscoring the need to further intensify efforts to achieve domestic sourcing of high-end equipment components.

　　The Localization of High-End Valves Has Been Difficult to Achieve At present, China’s valve market (as analyzed in the valve market report) is already capable of supplying a wide range of products, including heating valves, environmental protection valves, and building-use valves. Although, thanks to the efforts of domestic enterprises in recent years, some mid- to high-end pump and valve products have been localized, a number of key items still rely on imports. According to data provided by the China General Machinery Industry Association, since the beginning of this year, the major pump products imported in large quantities include hydraulic reciprocating plunger pumps, other hydraulic reciprocating displacement pumps, rotary axial piston pumps, other centrifugal pumps with rotational speeds below 10,000 rpm, liquid pump components, and vacuum pumps. As for valve products, the main categories include pressure-reducing valves, hydraulic transmission valves, pneumatic transmission valves, safety valves or relief valves, and valve components. In the field of high-pressure valves, reliance on imports persists, making this an area where China’s valve industry must focus its efforts to achieve breakthroughs in the future. The industrial positioning of the High-End Valve Industrial Park is to build a Chinese hub for high-end valves that is characterized by high sophistication, complete product sets, internationalization, and headquarters-based operations. Over the next three to five years, the park aims to attract 200 high-end valve companies, secure more than RMB 20 billion in investment, and achieve annual sales revenue exceeding RMB 50 billion—ultimately striving to reach annual sales of over RMB 100 billion.

　　At present, both domestic policy support and the existing level of technological capability are insufficiently conducive to the R&D of high-end valves. Overall, as the national policy to accelerate the revitalization of the equipment manufacturing industry is progressively implemented, general basic manufacturing will receive even greater priority in terms of development support. Major end-users such as the petrochemical, power, metallurgical, chemical, and urban construction sectors will see growing demand for valve products; however, the feasibility of import substitution for valves varies significantly across China’s various sub-sectors, underscoring the urgent need for stronger policy guidance and increased research and development support for high-end valves.

　　Why Has the Domestication of High-End Valves Been So Difficult to Achieve? According to an analysis by a responsible official of the China General Machinery Industry Association, there are primarily four reasons for this phenomenon.

　　R&D investment has long been inadequate. Domestic enterprises lag significantly behind some advanced foreign companies in their approach to product technology and innovation. Insufficient funding for scientific research and R&D has become a major constraint on valve manufacturers’ independent R&D efforts. According to incomplete statistics from the pump industry, R&D spending accounts for less than 2% of companies’ total revenue, a figure that is markedly lower than that of well-known international firms, indicating very limited industry-wide R&D investment. Relevant data show that the pump industry in China spends less on R&D over the entire year than a single foreign company allocates to research alone.

　　Weak capacity for independent innovation. According to available information, the Chinese machinery manufacturing industry has been slow in digesting and absorbing imported technologies, with most enterprises exhibiting limited capabilities in technological innovation; 57% of the core technologies underlying major mechanical products still rely on imports. Although most products in China’s pump manufacturing sector have now achieved basic domestic production, domestic firms predominantly undertake only low-end processing stages, indicating that both the breadth and depth of localization remain to be enhanced. For instance, even in domestically produced nuclear power plant equipment—such as nuclear-grade pumps—and in million-kilowatt ultra-supercritical and ultra-ultra-supercritical thermal power plant equipment—such as high-pressure boiler feedwater pump assemblies—the critical core technologies largely continue to depend on imports.

　　Customers exhibit a relatively low willingness to purchase domestically produced products. Although domestic products have performance metrics that are on par with their foreign counterparts, some customers still prefer to procure foreign-made equipment and technology, thereby increasing the difficulty of bringing China’s first-of-its-kind major technological (valve and pump) equipment to market. Despite the fact that many domestically produced high-end pump products boast a substantial level of technical sophistication, certain end-user departments continue to refuse to adopt them, citing reasons such as the lack of operational performance records.

　　Research on industry-wide common technologies is lacking. Following institutional reforms, some research institutes that once provided services to the industry have transformed into independent enterprises operating in isolation, resulting in significant changes in their organizational structure and core priorities. Consequently, their role in providing technical support to the industry has steadily weakened; the development of new technologies and processes has slowed considerably; and it has become increasingly difficult to align domestic standards for design, process engineering, materials, and manufacturing with international benchmarks. In light of this situation, relevant stakeholders have put forward three recommendations:

　　First, establish new mechanisms to encourage enterprises to pursue independent innovation. In accordance with the national comprehensive plan for the pump and valve manufacturing industry and the regional development plan, a number of regionally focused laboratories for the development of leading technologies and products, testing bases, and product R&D centers will be established. Leveraging science and education institutions with strong innovation capabilities, technology-transfer hubs will be set up. Furthermore, the establishment of R&D centers for pump and valve manufacturing technologies will be encouraged and supported.

　　Secondly, we will improve the technology dissemination system. This involves appropriately establishing grassroots organizations for the promotion of manufacturing technologies and gradually developing a diversified system in which national manufacturing technology promotion agencies play the leading role, with clear division of labor, effective collaboration, and comprehensive service delivery.

　　In addition, it is necessary to improve the science and technology training system and strengthen the intellectual property protection framework. Efforts should be made to establish and refine the linkage between the training service functions of universities, research institutions, and secondary vocational schools and basic education, thereby fully leveraging the strengths of institutions at all levels. Furthermore, the market environment for new-product innovation should be refined, new-product development should be actively promoted, and enterprises and research institutions should establish and完善 robust internal regulations and procedures for the independent development and management of new products.