Since the founding of the People's Republic of China, the Chinese valve industry has basically divided into two stages of growth. One is from 1949 to the time of reform and opening up, and the other is reform and opening up. In the early days of the founding of the People's Republic of China, it was waiting for a hundred wastes, under the leadership of the government, to concentrate resources on the development of heavy industry, and to renovate, expand, or build steel mills and chemical plants throughout the country. Driven the initial development of the peripheral accessories of the complete set of equipment, Valve industry gradually recovered its vitality. At this time, it is still a collective economy and there is no self-employed business. Under the intervention of the state's macro-control, production by quota, the product belongs to the era of shortage of supply.

           In the reform and opening up in the 1980s, self-employed households rose, and some valve factories that originally belonged to common property were privately contracted. The valve industry has entered a situation where the private and public sectors have developed in parallel. In the fierce market competition, private enterprises have quickly occupied the market with more flexible operating methods and more in line with the business concepts and means of the market economy. The Chinese valve industry has entered a rapid development stage.

           After decades of precipitation, China has become the country with the largest number of Valve companies in the world. The domestic valve market demand is 40 billion yuan per year and the import demand is 10 billion yuan. The concentrated areas of Valve companies have experienced intensive benefits and have become world-renowned valve distribution centers. The most well-known ones are currently Wenzhou and Taiwan.

           Wenzhou Longwan District was awarded the title of "China Valve City" by the China Machinery Industry Association in 2006. Longwan District has jurisdiction over three streets and one town. Yongzhong Street, Shacheng Town, Yongxing Street and Haibin Street have gathered more than 1,400 valve enterprises, of which more than 200 have an annual turnover of more than 5 million, of which 7 have annual sales of more than 200 million yuan. Every year, millions of buyers from all over the world visit here. Valve products are exported to 80 countries and regions in Southeast Asia, the Middle East, and Africa. Longwan valve enterprises account for more than 25 % of the domestic valve market, and the annual export output value exceeds 180 million U.S. dollars.

Taizhou Yuhuan was jointly awarded by the China Construction Association and the China Real Estate Association in 2004 as the "China Water Heating and Valve Fine Production(Purchasing) Base" plaque. At the same time, it enjoys the reputation of "China Valve Capital" in the international community. There are more than 1,100 valve enterprises in the entire region, of which 80 have their own export rights, and more than 200 branches are directly established in 70 countries. The annual export of valves accounts for more than 60 % of the export share of domestic similar products, and the export value reaches 800 million U.S. dollars. Compared with Wenzhou, Yuhuan's valve companies are larger in scale and have stronger technical strength. Many companies have obtained export country product quality certification, such as UL certification, NSF, UPC certification, TUV certification, CE certification, KS certification, etc..

           Industrial agglomeration is conducive to the formation of scale effects, bring more visibility, and win more customers 'attention. In addition to gathering industrial bases, many cities in China are scattered with more private valve companies. Even so, it still can not meet the needs of the market. Why?

           The development history of the Chinese valve industry in the past three decades is a microcosm of all industries in China after the reform and opening up. It is an inevitable product of the steady and rapid development of China's overall economy. In order to meet the needs of people's material lives, the funds from all sides have crossed the sea, the infrastructure in the field of industrial production has changed rapidly, and the products produced can quickly meet people's daily needs, and follow the improvement of people's living standards. The material needs are abundant. We need more production plants, more supporting facilities, food machinery, chemical facilities, and the construction of each set of production equipment that involve the interests of hundreds or even thousands of parts and components manufacturers. Valves are one of the most widely needed and necessary. Along with the annual GDP growth rate of 8 %, the valve industry is also constantly developing.

           The dependence of the Chinese valve industry on the domestic demand market is very strong, which shows the dependence of domestic valve enterprises on the construction of domestic demand infrastructure projects. In particular, in the past decade or so, the state-owned enterprises led by the government have reformed their projects, upgraded their equipment, and attracted investment from local governments to attract foreign investment in the construction of basic production projects. These projects all contain market demand for valve accessories.. Even with the current slowdown in GDP growth, it is still able to maintain rapid growth.

However, from the overall point of view, the status quo of the Chinese valve industry is not optimistic.

           1, more quantity less quality. The number of Chinese valve enterprises above designated size is small, and most of them are small-scale private enterprises. They lack professional and systematic business concepts. Lack of competition awareness and low product quality under domestic industry protection policies.

           2, the market competition is disorderly, the price is chaotic. Most of the operators in the Chinese valve industry were mainly in the 1960s and 1970s. Many operators had Xiaofujian's mentality and lacked motivation and goals for learning. Without modern marketing ideas, market competition still remains at the initial level of price war.

           3) Macroeconomic growth has slowed and domestic demand has been weak. Over the past decade or so, China's economy has maintained an annual growth momentum of 8 %. This has a great relationship with the state's intervention in macro-control. The projects designed are important infrastructure that affects the national economy and people's livelihood. With the continuous improvement of the degree of marketization, government intervention has decreased, and the degree of integration with the international community has become more and more close. After many years of pulling, domestic demand has already shown fatigue and weak growth. The country's doors are open, and foreign valve companies have entered the mainland market. The impact and threat to the domestic valve industry are increasing day by day.

           China's valve industry is facing a shift from labor-intensive to technology-intensive. Imported valves are characterized by accurate technical parameters, excellent materials, and durability, while domestic valve enterprises have long been underweight, and some manufacturers have even cut corners to reduce costs. Poor product quality has become a hard injury to the entire industry. It seriously damages the international image of the Chinese valve industry and affects the market position of product exports.

           5, labor costs increased. With the development of the economy and the improvement of people's material living standards, the overall wage level of the society has also continued to rise. The Chinese valve industry was originally a labor-intensive industry, and the increase in labor costs has brought about an increase in product prices. The increase in valve prices will inevitably reduce its market competitiveness.

           6, environmental pollution. The development of the valve industry will bring a certain degree of pollution to the surrounding environment. In the past few decades, due to the prevalence of local protectionism, the development of Valve enterprises has been smooth, and with the increasing demand for domestic environmental protection, Some low-efficiency valve enterprises will face the risk of bankruptcy. Comprehensive treatment of water pollution and air pollution caused by production links is a common issue facing the valve industry in China.

           7, industrial upgrade, domestic sales to export. Due to the large gap in domestic valve industry enterprises 'production capacity, many enterprises' basic production equipment are lagging behind, and the product quality is uneven. When exporting, they face the problem of unqualified quality inspection and can not pass customs clearance into foreign markets. It is necessary to upgrade existing production equipment, improve technical standards and improve product quality. On the one hand, it can compete with domestic import valves and defend domestic market share. On the other hand, it can expand exports and strive to create more foreign exchange and taxation.