Valve Association: Building a strong valve industry to contribute to the development of China’s manufacturing sector

The manufacturing sector forms the foundation of the economic structure. The real economy, centred on manufacturing, is the cornerstone of the nation’s economic development. However, since the global financial crisis, the Chinese economy has become markedly financialised or virtualised, leaving the real economy facing severe difficulties that have already jeopardised the foundations of sustainable economic development. Consequently, innovative thinking is required to break through this impasse, thereby consolidating the foundations of economic development and unlocking its potential. 

With the reshoring of manufacturing in developed countries and intensifying competition from emerging economies, the challenges facing domestic industrial development have become more severe, and downward pressure on the industrial sector is set to become even more pronounced. Faced with the ‘new normal’ of China’s economic development and an uncertain global political and economic environment, China is transforming its economic growth model through sustained supply-side reforms and technological innovation to achieve structural transformation and upgrading. By further opening up to the outside world, the country aims to enhance competitiveness and maintain sustained and stable economic development. Moving forward, the valve industry will shift towards a model focused on quality and efficiency, with innovation serving as the primary driver of growth.

Faced with a new round of technological revolution and industrial transformation, China’s valve industry is under severe pressure and challenges to transform and upgrade. As a latecomer to the valve industry, China should fully leverage its late-mover advantage, integrate industry with finance, and pool global resources to more effectively catch up with and surpass world-leading standards.

Under current conditions, the key areas for breakthroughs for valve manufacturers should include reform, development, innovation and internationalisation. Reform primarily involves addressing issues related to property rights systems, operational mechanisms, governance structures, incentive and constraint mechanisms, and the integration of existing resources through market-oriented mechanisms, thereby enhancing operational efficiency and vitality. Development focuses on expanding enterprise scale, business scope and market reach, adjusting and optimising business structures and layouts, scaling up operations and strengthening capabilities, and improving risk resilience. Innovation enables enterprises to better meet or even lead market demand, whilst building higher competitive barriers. Internationalisation enables the acquisition and utilisation of international resources, technology, brands, channels and markets, allowing for the global allocation of resources and the optimisation of the industrial value chain. 

Valve manufacturing enterprises must cultivate an innovative mindset. With such a mindset, enterprises will be motivated to strive for excellence and seize opportunities. At present, enterprises should adopt modern management philosophies, including a market-oriented mindset, a service-oriented mindset, a competitive mindset and a crisis-awareness mindset. When expanding into new markets—including the establishment of promotional platforms, the selection and deployment of promotional media, the identification of clients, the development of new client relationships, business communication and interaction, and the generation of new orders—companies must have long-term planning, responsive measures and development mechanisms in place. Only by placing greater emphasis on building proprietary brands to enhance the position of China’s valve industry within the global industrial division of labour can companies better withstand risks and thereby strengthen their sustainable development, whilst simultaneously contributing to the development of China’s manufacturing sector.