Belt and Road Summit Forum Bearings have huge space

The Belt and Road Forum for International Cooperation was held in Beijing from May 14th to 15th. This is a high-profile forum activity over the past three years since the Belt and Road Initiative was proposed. Relevant experts said that the advancement of the Belt and Road Initiative will have a significant impact on China's equipment manufacturing industry. Bearings have always been a key component in the equipment manufacturing industry, and the performance, quality and reliability of mechanical equipment depend on the performance of bearings. According to the 2017-2022 China Bearing Products Industry Market Demand and Investment Consulting Report released by the China Report Hall, with the increase in market demand for high-speed rail and wind power, the research and development demand for bearings in my country continues to increase. According to customs data, there are obvious signs of recovery in the bearing industry. In January this year, the export value of bearings increased by 12% year-on-year. The performance of related listed companies such as Longxi Co., Ltd., Jinxi Axle, and Northwest Bearing will be positively boosted.

Bearings have always been a key component in the equipment manufacturing industry, and the performance, quality and reliability of mechanical equipment depend on the performance of bearings. Bearings are an indispensable "joint" for national economic construction. They are widely used in metallurgy, mining, petroleum, chemical, shipbuilding, automobile, high-speed rail, cement, construction machinery, heavy machinery and other industries, and the market is huge.

In the international market, there is a huge space for bearings. Bearings, as a highly "standardized, serialized and generalized" "three-in-one" mechanical product, are naturally suitable for global production and procurement. As the major multinational bearing companies shift from "production in demand" to "production in the best place", that is, from implementing localized production in the country where the target market is located, especially following the overseas factories of the host company for supporting production nearby, to producing according to each production base The exchange rate fluctuations, inflation, manufacturing costs, market demand and other economic environment conditions of the host country, timely adjust the variety and quantity of bearings in each production base to achieve low-cost production under the international average level, Chinese bearing enterprises will continue to improve in quality and technology. In the context of breakthroughs, share the huge market space of the global division of labor and cooperation in the bearing industry.

The "Belt and Road" International Cooperation Summit Forum to be held next month has entered the countdown, which is an important catalyst for the overseas expansion of bearing companies. On April 17, Wei Jianguo, vice chairman of the China Center for International Economic Exchanges and former vice minister of the Ministry of Commerce, was a guest in the column "The Belt and Road Think Tank Talk" of the Voice of Economy. 77 overseas cooperation zones have been established in cooperation with various countries. There are one or two thousand Chinese-funded enterprises that have joined the cooperation zones, and they have won four or five thousand projects. The output value generated by these overseas cooperation zones has reached 20 billion US dollars, and this number is still increasing. There are still 25 countries that hope that China will establish another 36 overseas cooperation zones along the "Belt and Road". According to statistics from the Ministry of Commerce, in the first two months of this year, our non-financial investment in 40 countries and regions along the “Belt and Road” reached nearly 1.8 billion US dollars, an increase of 8.5 percentage points.

Wei Jianguo believes that some construction projects along the “Belt and Road”, especially in manufacturing, energy, transportation and agriculture, are very important.

And customs data shows that the bearing industry is picking up. In January 2017, the export value of China's bearings was 320,253 thousand US dollars, a year-on-year increase of 12%. From January to December 2016, the export value of China's bearings was US$3,506,942,000, a year-on-year decrease of 2.3%. In fact, since April last year, the value of China's bearing exports has been rising every month.

At present, the internationalization of Chinese bearing enterprises is just in its infancy. Only enterprises with an international vision and implementing the internationalization strategy of "going out", especially leading enterprises represented by listed companies, can win greater development.