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From January to June 2013, the primary manufacturing base of China valve --Wenzhou whoes valves were exported reached 8109 batches, an increase of 0.61%, export value of $0.26 billion,down 2.98% year-on-year while its export value rose as high as 42% on January to June 2012. Two sets of data show an obvious contrast by comparison.
The analysts from the mechanical industry considered that there has been an increasingly fierce competition in the domestic valve market in recent years, especially in the low-end universal valves with relatively low technological threshold.Many valve companies survived through expanding its exports in succession on account of a serious phenomenon of product homogenization, excess capacity and a continued decline on the profit level.But the expansion of exports is not catholicon which solves the development dilemma of the valve industry.Some problems are inevitable to gradually emerge by seemingly glamorous export data: Many valve export enterprises follow the price war strategy of the domestic market for expanding their export share, which leads cutthroat competition to get intensified; Valve exports are settled in dollars and the exchange rate risk caused by the appreciation of RMB gets worse and worse;Bad product quality from some of valve manufacturers damages the interests of the domestic trade and the image of China valve export for selling seconds at best quality prices. All these result in a continuous decline on export profits of the valve industry.