Developed countries are trying to change China from the world's workshop to the world's market, by reason of optimization of their resources and markets. Despite the financial crisis, the major transnational bearing companies are still increasing investment in China, and enlarging the production capacity for the target market of China. Several of them show their ambition of getting the biggest market shares in Chinese market. It will speed up nationalization of international bearing market and internationalization of Chinese national bearing market. If the Chinese bearing companies do not take strong countermeasures and improve their market competitiveness, the foreign enterprises may be the biggest beneficiaries from the government measures to stimulate domestic demand.
Under the pressure of financial crisis, these transnational bearing companies were in trouble. But they still invested more money in R&D. Some of them even spent plenty of money in building large scale and high level R&D centers in China. They tried to gather strength to seize the best position of technology improvement and industry development, to keep their own market shares and to take Chinese companies' market shares in high end market in future. If Chinese companies don't pay much attention to innovation and R&D, they may be forced to the low end bearing market.
Besides high end market, medium and low end markets are also threatened. Transnational bearing companies bought finished bearings from Chinese manufacturers in their own brands, and sourced or co-worked for forged rings and turned rings . It will be helpful to take more market shares in medium and low end market. At the same time, it will lead to vicious competition in the market.
Employees, raw material and components localization will lower the cost effectively for multinational companies. On the other hand, Chinese bearing companies was suffered from high and increasing labor cost because of laws and policies standardization. The competitive advantage of low cost will not exist if they do not improve themselves in technology, management, productivity, materials utilization ratio and saving energy and resources.
In conclusion, Chinese bearing industry will face enormous competitive pressure in post-financial crisis era.