The economy risk of the china factory
This topic is main discuss the cnc parts factory , include cnc turning manufacture , cnc milling ,the products include hydraulic fitting , pipe fitting ,fastener , valves, tools , plumbing area .
Start from the Amarcia launch US-CHINA tarrif war .China factories is mostly affect by the america policy .
The tarrif is increase 80% percent since 2018 years to 2025,it tarrif is based on our carbon steel pipe fitting area .
So based on this new high tarrif. Many america companies start change order to vietnam , mexico and other countries .
They demand the old china supplier move to other countries to open factory ,otherwise will start find new supplier .
Both cutomers and factories are hard to bear this high tarrif .
So start from 2018 mostly factories ,factory order start become small and pieces . It is hard to see the big order inquiry from the internet and relationship .
The more big problem is the not only america limit china manufacture ,also demand other friend count
The situation of 2025 year CNC machining
In the past 30 years , China show up thousands of machinery factories .
Also some powerful boss have grow up big companies ,even though they have sales department, qulity department ,production department .
Face the country to country economy war , they also face a big challege .such as :
1- The company is only service for america customers . It push them have to obey US customers move the production line to vietnam , sigapore,thailand , mexico .
Which coutnry the think suitable survive.
2-The company only service america market , but not get high profit ,no power to change to other countries . Suddently order all moved and face bankrupt .
3-The chinese boss is only know technoloy , No have sales experience , only provide cnc machine service for local companies . Face loss money or bankrupt .
4-Tarrif problem cause customer give up goods , factory can not bear the loss .
5-Transport goods to other countries to avoid high tarrif .
6-The factory before produce for oversea customers, now affecty by tarrif , start domestic martket .
Then cause the problem will be cheaper price , low profit .More worse market .
Example of yuhuan hongqian machinery co.,ltd
Yuhuan hongqian machinery co.,ltd is one of cnc turning parts factory , we are mainly produce pipe joint , pipe fitting ,bulkhead fiitng , hext nut,bolt , elbow connector ,shatf ,flanges , all based on customer provide drawings and we produce by the drawing demand . So in this competive situation , we need to focus on how to control quality in cnc turning process and save money in the material , management fee . The market is become worse ,before all factories keep low but Acceptable profit ，Now affect by the unsteady economy situtaion and tarrif , all customers want to reduce costs . Sometimes we face one year cut 2-3 times price cut . Not only one customer , 30% customer . So from my side , the futre of china cnc machinery factory road is hard . Many factory will be closed in this two years .
How to survive in the future ?
For our cnc parts manufacture , the main problem such as follow : 1- We do not have the own products .we produce for other products . We do not have price power .So profit is low . 2-must innovate and develop your own products . 3-Study how to Social media ,internet to develop own customers .improve company sales power . 4-Develop more market like europe ,russia , mexico , brazil , middle east etc .
Conclusion
The future of China’s CNC parts and pipe fitting industry is challenging. Tariff pressures, global policy shifts, and reduced reliance on large US orders are reshaping the market. Factories that continue to rely solely on low-cost OEM production for single regions risk bankruptcy or closure.
Surviving and thriving will require a combination of innovation, market diversification, cost efficiency, and strong sales capabilities. Factories like Yuhuan Hongqian Machinery Co., Ltd. that focus on quality CNC turning, process optimization, and exploring new markets have the best chance of surviving and even growing despite global economic and geopolitical pressures.
In short, adaptation, diversification, and innovation are no longer optional—they are essential for the future of China’s CNC machinery and pipe fitting industry