Analysis of why Chinese machinery parts are expensive
July 10 08:11:16, 2025
At the Shanghai Bauma Exhibition in late 2012, Hainan Construction Machinery Co., Ltd. made a strong impression with its range of construction equipment, each highlighted by impressive "firsts" in various industries. The company showcased the "largest domestic hydraulic excavator," the "most domestically produced long-arm concrete pump truck," and the "largest domestic bulldozer." These products drew significant attention from visitors, many of whom stopped to take photos and became the center of interest at the exhibition.
Despite these achievements, the so-called self-developed domestic products still faced challenges. A major issue was the reliance on imported spare parts, especially for high-end and large-tonnage machinery that was popular in overseas markets. Core components such as engines, hydraulic pumps, and valves were often sourced from abroad—engines from the U.S., hydraulic pumps from Germany, and valves from international suppliers. This dependency highlighted a gap between innovation and actual production capabilities.
Industry insiders pointed out that about 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 has led to a traditional imbalance where heavy emphasis is placed on the main machine while support systems are neglected. If core components could be localized, the overall cost of machines could be significantly reduced.
Currently, some smaller components, such as fuel tanks, valves, and oil pumps under 15 tons, can be produced domestically. Even certain cylinders and motors have been replaced with local alternatives. However, high-end models and machines over 30 tons still require imports. Similarly, more than 90% of oil pumps above 20 tons are imported, with only low-pressure pumps being locally manufactured. High-pressure pumps, like plunger pumps, remain dependent on foreign suppliers.
The hydraulic system remains one of the most critical areas where domestic products rely heavily on imports. As a key component, the hydraulic system plays a vital role in the performance of the entire machine. Due to concerns over the reliability of domestic components, many companies avoid using them in high-end export models, fearing damage to their reputation.
This reliance on imported parts is closely tied to the overall craftsmanship of the industry. For example, when it comes to materials like 45 steel, foreign producers can achieve very precise titanium content, whereas domestic manufacturers often have a wider range—between 0.3% and 0.48%. This inconsistency affects heat treatment and ultimately leads to shorter product life and lower reliability.
Additionally, domestic manufacturers often overlook details such as cleaning, which contributes to vulnerabilities in hydraulic components. From material selection to worker skill, every step in the manufacturing process has an impact on the final product. Even if a company uses advanced equipment and follows design blueprints, the lack of precision in execution results in a noticeable gap compared to foreign counterparts.
The difference in process levels may seem small, but it's enough to create a significant gap between domestic and international standards. This has led to a situation where domestic engineering machinery parts remain highly dependent on imports, driving up the overall cost of machines. To truly compete globally, China’s construction machinery industry must address these deep-rooted issues and improve its manufacturing capabilities from the ground up.