Chinese bearing market is facing new challenges. Even though it is promoting a great deal, still it lags behind the introduction of machinery industries. The the situation is quite complex.
First of all, since the bearing industry lags behind, it cannot satisfy the needs from the maintenance and supporting from the primary engines which create a significant increase of imported bearings over the years.
The dwelling and degree of bearings don’t meet the introduction of primary engines. Since the national economy develops sustainably, quickly and healthily, primary engines develop towards high precision, high end, high reliability, and values. But because the configured area of the primary engines, bearings can’t meet up with the event pace of primary engines. Using the railway bearing for example, the train speed continues to be elevated several occasions, but trains using the speed of above 160 km/h all make use of the imported bearing products. Besides, the majority of automobile bearings will also be imported. And also the imported bearings will also be used in the metallurgical and mining machinery, engineering machinery, and machine tools, etc. Even appliances for the home like the air conditioning units use imported bearing products.
Next, China had joined the WTO. It ought to have fun playing the world economy and face new situations from the transformation of world manufacturing industry to China.
The entering of WTO just likes a dual-edged sword. On a single hands, it may provide lots of possibilities for development. However, China needs to face more serious challenges. These challenges could be briefly summarized as followings: the domestication of worldwide competition and also the internationalization from the domestic competition. Increasingly more multinational companies enter in the Chinese bearing sell to contend with Chinese enterprises.
This is case study around the status of individuals multinational companies’ entering of China’s market. Presently, multinational companies allow us rather rapidly in China. They set joint ventures or wholly-owned factories in China. Meanwhile, they expand the development scale and accelerate the implementation of policy about personnel and procurement localization. All of these make much effect on the benefits of China’s bearing industry. Therefore, China bearing industry needs to face more serious competition.
With the introduction of their goods, multinational companies started to occupy China’s railway, automobile, metallurgy, mining, and machine tools markets. They can reduce their domestic productivity, and shift the development to Chinese market. To be able to adjust to Chinese market, a number of individuals companies establish R & D Centers in China. Besides, additionally they develop sales network. Really, they’re turning China into part of multinational bearing industry. This is among challenges for China’s bearing industry.
Overall, recently, China’s bearing industry has achieved sustained, rapid and healthy development. It’s attracted worldwide attention. Whether it wants is the bearing power within the worldwide market, china bearing industry should develop its technology. Furthermore, Chinese bearing enterprises should develop high-tech products. Plus they should seek partnership with a few more powerful companies to improve their competitiveness.