Analysis of why Chinese machinery parts are expensive
July 10 08:26:07, 2025
At the Shanghai Bauma Exhibition in late 2012, Hainan Construction Machinery Co., Ltd. made a strong impression with its range of construction equipment that claimed "firsts" across various industry categories. The company showcased products like the "largest domestic hydraulic excavator," the "most domestically produced long-arm concrete pump truck," and the "largest domestic bulldozer." These machines became popular among visitors, who stopped to take photos and engage with the exhibits. Despite these impressive claims, many of the so-called self-developed products still relied heavily on imported spare parts, especially in high-end models that were exported overseas. Core components such as engines, hydraulic pumps, and valves were often sourced from foreign manufacturers—engines from the U.S., hydraulic pumps from Germany, and valves from abroad.
According to industry experts, roughly 30% of the cost of construction machinery comes from parts and components, with core elements like hydraulics, transmissions, control systems, and engines almost entirely imported. This dependency has led to a situation where domestic companies prioritize performance and reliability over local sourcing, even if it means higher costs. If these critical components could be localized, the overall machine cost could be significantly reduced.
Currently, some smaller components like fuel tanks, valves, and oil pumps under 15 tons can be manufactured domestically. Even certain cylinders and motors have been replaced by local alternatives. However, for high-end models and heavy-duty equipment—especially those weighing over 30 tons—many parts are still imported. For example, more than 90% of oil pumps over 20 tons are imported, with only low-pressure pumps being locally produced. High-pressure pumps, such as plunger pumps, remain largely dependent on foreign suppliers. The reliance on imported hydraulic systems is one of the most significant challenges in the domestic machinery industry. As a core component, the hydraulic system plays a vital role in the overall performance of the machine. Due to concerns about the reliability of domestic components, many companies avoid using them in high-end export models, fearing damage to their reputation.
The lack of trust in domestic parts is closely tied to the overall craftsmanship of the industry. For instance, when it comes to materials like 45 steel, foreign producers can achieve precise titanium content, while domestic production often ranges between 0.3% and 0.48%, leading to inconsistencies that affect heat treatment and, consequently, product lifespan and reliability. Additionally, domestic manufacturers often neglect details such as cleaning, which can lead to vulnerabilities in hydraulic components. From material selection to manufacturing techniques and worker execution, every step in the process contributes to the final quality. Even small gaps at each stage result in a noticeable difference in the end product.
In terms of process technology, many domestic procedures fall short compared to foreign standards, even if the differences seem minor. These shortcomings contribute to the gap between domestic and international product quality. As a result, the country remains highly dependent on imported components, which drives up the cost of the entire machine. This dependency not only affects competitiveness but also limits the potential for innovation and growth within the domestic construction machinery industry.