It is obvious that China's hydraulic industry is big but not strong. The main problem is that there are too many low-end hydraulic parts and the competition is fierce. However, there is a serious shortage of high-end variable hydraulic components, and a large number of hydraulic products need to be imported every year.

For example, in 2011, the import volume reached a high of 3.4 billion US dollars, accounting for 50% of the domestic output value of that year; In the past two years, due to the decline in excavator market demand, the import volume has declined, but it is also about $2.5 billion, accounting for 30% of the industry output value in 2013.

At the same time, according to the statistics of China Hydraulic Association, construction machinery is the largest downstream application industry of hydraulic products. According to the estimated amount, about one third of domestic hydraulic products are used in construction machinery, which is similar to the Japanese hydraulic industry. In the construction machinery, the hydraulic excavator is the product that uses the most hydraulic parts and has the highest requirements.

Hydraulic parts are key mechanical basic parts, and their development level directly determines the performance, quality and reliability of main engine products. In order to change the situation that China's hydraulic industry is big but not strong, the national policy has clearly focused on supporting the development of the hydraulic industry. In November 2011, the Ministry of Industry and Information Technology issued the Twelfth Five-Year Development Plan for Machinery Basic Parts, Basic Manufacturing Technology and Basic Materials Industry, which clearly stated that it is necessary to greatly improve the overall level of the "three basic" industries, improve the supporting capacity for the equipment manufacturing industry, and realize the transformation and upgrading of the equipment manufacturing industry. The Plan proposes to focus on developing 11 types of mechanical basic components, among which high-pressure hydraulic components and high-power hydraulic components rank first. Thirdly, it involves high-pressure plunger pump/motor with 31.5 MPa and above for construction machinery, high-pressure hydraulic valve, hydraulic electronic controller, high-frequency electro-hydraulic servo valve and proportional valve with working pressure of 31.5 MPa and above, hydraulic torque converter, digital hydraulic pump and oil cylinder, high-speed and high-power hydraulic coupling speed regulating device, and continuously variable transmission device for agricultural machinery.

In addition, the basic materials to be developed mainly include cast iron for high-pressure precision hydraulic castings, and the materials for hydraulic castings are listed in 12 kinds of symbolic basic materials: including high-pressure plunger pump/motor housing, high-pressure integral multi-way valve body, high-power hydraulic coupling pump impeller and ductile iron and vermicular iron for housing castings.