Industrial Machinery,Types Of Manufacturing Industry,Technology In Manufacturing Industry Blog - jpkinstruments.com

October 13, 2025

Basic parts rely on imports to restrict China's construction machinery industry

In recent interviews, reporters visited major Chinese construction machinery manufacturers such as Xugong, Zoomlion, and Sany Group. They found that the industry's core components are heavily dependent on foreign imports, making it vulnerable to external control. Foreign suppliers have started imposing restrictions in areas like component supply, pricing, delivery terms, and specifications, which has created significant challenges for domestic companies. Additionally, some policy issues have hindered the industry’s normal development, preventing it from growing stronger and more competitive. It is reported that about 70% of industry profits are consumed by imported parts. In Hunan Province, there are 29 large-scale engineering machinery enterprises, three of which are listed companies. According to the Hunan Machinery Engineering Association, the cost of imported parts accounts for over 40% of manufacturing costs for major products. Yi Xiaogang, CEO of Sany Heavy Industry, noted that while sourcing materials globally can optimize product quality, the heavy reliance on imported components poses risks to national industrial security. This dependence increases production costs and limits normal operations. Xugong, a leading player in China's construction machinery sector, revealed that many of its export products rely on imported parts. In 2007, Xugong achieved $5 billion in exports, but spent $2 billion on foreign components, meaning imported parts accounted for 40% of sales and 70-80% of profits. Similarly, Zoomlion’s main products, including sanitation equipment, concrete machinery, and mobile cranes, hold over 30% of the domestic market. Cui Yufang, head of corporate science and technology management at Zoomlion, stated that imported parts make up 40% of the company’s manufacturing costs. European and American component manufacturers have begun to limit the competitiveness of Chinese products. Key components such as hydraulic systems, engines, control units, and transmission systems are largely imported. Foreign suppliers of hydraulic components and special steel have been using monopolistic practices to impose "overlord terms." For example, Zoomlion’s special steel supplier, a Swedish firm, raised prices and required full payment eight months in advance. Chinese companies often face extended delivery times, forcing them to adjust production schedules and even use air freight to avoid delays, significantly increasing costs. Moreover, some international component manufacturers have colluded to design similar components for Chinese companies, limiting their growth and forcing them to compete on equal footing with foreign firms. Even outdated products from developed countries are not easily available to Chinese companies. In contrast, global giants like Komatsu and Caterpillar produce their own core components, giving them a strategic advantage. Zhan Chunxin, chairman of Zoomlion, emphasized that while China has become a major player in the construction machinery industry, it still lacks the strength to be a true leader. To grow, the industry must enhance independent innovation, push for high-level product development, and integrate electromechanical and intelligent technologies. Improving the production level of domestic basic components is crucial. Currently, China's component manufacturers are mostly small and medium-sized enterprises with limited R&D capabilities. Yi Xiaogang and others suggest that the government should support and guide the industry to overcome these weaknesses. They recommend: first, providing financial support or preferential loans for research into high-end components; second, fostering long-term partnerships between host and component companies to boost production capacity; and third, encouraging mergers and acquisitions to form large-scale component enterprises with better R&D and market development capabilities. Basic components require long-term investment. Several major construction machinery companies have already started developing their own component strategies. The government should guide this process, not just offer encouragement. It should also promote efficient R&D to avoid resource wastage and ensure sustainable growth.

Stearic Acid

Stearic acid is widely used in the manufacture of PVC plastic pipes, plates, profiles, and films. It is a PVC heat Stabilizer with good lubricity and good light and heat stability. In plastic PVC pipes, stearic acid helps prevent "coking" during processing. It is an effective thermal stabilizer added in the processing of PVC films, and can prevent finished films caused by excessive exposure to sulfides.

Mainly used to produce stearates: sodium stearate, magnesium stearate, calcium stearate, lead stearate, aluminum stearate, cadmium stearate, iron stearate, potassium stearate.
Widely used to make cosmetics, plastic cold-resistant plasticizers, mold release agents, stabilizers, surfactants, rubber vulcanization accelerators, waterproofing agents, polishing agents, metal soaps, metal mineral flotation agents, softeners, pharmaceuticals and others Organic chemicals.
In addition, it can also be used as a solvent for oil-soluble pigments, a crayon slip agent, a wax paper polish, and an emulsifier for glyceryl stearate.
The product is used as a lubricant, defoamer and food additives in the food industry as a raw material for glyceryl stearate, sorbitan stearate, and sucrose esters. Used as the raw material of additives and the raw material of daily chemical products.
Stearic acid is widely used in the manufacture of PVC plastic pipes, plates, profiles and films. It is a PVC heat stabilizer with good lubricity and good light and heat stabilization. In plastic PVC pipes, stearic acid helps prevent "scorching" during processing. It is an effective heat stabilizer added in the processing of PVC film, and it can also prevent the finished film caused by exposure to sulfide. Discoloration.

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