China's valve companies lack the initiative to speak internationally

They usually purchase valve products that meet the standard requirements from developing countries, and then sell them to developing countries and developed countries. Or is it developing a wholly-owned or joint-venture enterprise in a developing country, and the product will be sold back to the market? Factually speaking, in the industrial transfer of this developed country, China’s valve companies still receive many benefits.

Many companies have achieved ISO9001 quality management system certification and API certification, and some companies have also achieved CE certification of the European Union. At the same time, many of China's valve companies have been able to fully produce API standard gate valves, globe valves, check valves, ball valves, butterfly valves and other products. The product quality can fully meet the requirements of ISO5208:1993 inspection standards. As a result, China's valve products have been increasing year by year. Taken in recent years, the export value of exports in 2001 was 380 million U.S. dollars, the export value of exports in 2002 was 430 million U.S. dollars, and the export value of exports in 2004 was 656 million U.S. dollars, showing that the export situation was very good.

However, despite the overwhelming flood of domestic valve products, Chinese companies still have no say in the international valve market. The price is the final say for others, and the rules are the final say for others. Developed countries purchase extremely low-end valves from China, and then sell them to developing countries at a higher price. They are both profitable and well-behaved. Domestic companies can only play the role of workers.

In fact, as long as we understand the needs of the market, domestic valve companies have become dominant in the international market. As long as it is done in a proper manner, we can stand on the front of the market and act as the protagonist of the market. Sole proprietorship refers to the independent establishment of factories abroad. It can be acquired through direct acquisition of existing local companies, or it can create a new company. According to the reporter of the Refrigeration Express, the advantage of a sole proprietorship is that profits can be enjoyed exclusively, and more international marketing experience and market opportunities can be obtained. The parent company has full management and control over overseas subsidiaries. The disadvantages are large investment, high risks and many uncertainties.

Followed by foreign direct investment. Foreign direct investment refers to the actual ownership and control of foreign companies and direct participation in its management. From an equity perspective, it has two different forms, such as joint ventures. A joint venture refers to a company that invests in an enterprise with a local company in a foreign market. A joint venture can buy a new company by purchasing equity from a local company or co-financing. The advantage of a joint venture is that the benefits are greater. The company has control over marketing and production and can receive market information feedback. The disadvantage is that there are often contradictions between partners due to different views on production and marketing.

Last is the exit. Exports include direct exports and indirect exports. Direct export means that the company directly sells its products to the international market. It also has two ways: First, it is sold to local markets through foreign middlemen. The second is that companies set up sales organizations abroad and sell the products directly to local customers. Indirect exports mean that companies export their products through domestic middlemen. The export method is the simplest choice. It does not require a full-time salesman, nor does it require a large amount of capital, and is flexible and risk-free. However, the shortcomings are also very obvious, that is, companies cannot directly participate in international sales activities. They basically get out of control of the export market. Market information feedback is limited, and it is difficult to make timely adjustments to changes in the market.