China's bearing manufacturers are working to develop input to the government's determination of the upcoming 12th Five Year Plan for economic and social development. Currently, China's communist central government is steering the country along the economic and social plans laid out under the 11th Five-Year Plan 2006-2010.

As that plan winds down, Chinese manufacturers are acutely aware that the world manufacturing economy is changing rapidly, and bringing social changes with it. The 12th Five-Year Plan will integrate more social development issues along with recognition of the challenges most bearing manufacturers have faced during the global recession.

To protect domestic industries, the heads of China's manufacturers, including bearing manufacturers in each province, meet to determine how best to present their goals and their needs, coordinating with the industry as a whole. Those various regional plans are then taken by the central government, which uses them to determine the next Five-Year Plan to guide its involvement in internal and external economic policies, both on national and regional levels.

Developing target growth rates are important to the next plan, as is a recognition that some manufacturers have become too weak to stand on their own and should be acquired by larger, stronger companies. In addition, the central government has made it clear that economic stimulus funds must not be used to shore up overcapacity, but instead work to develop infrastructure and bring more advanced high-quality manufacturing techniques into the mainstream.

It may not be directly stated, but the central government is sure to focus much of its bearing industry expectations on controlling growth, reducing its environmental footprint, reducing fragmentation, encouraging larger company growth, rebuilding profitability, and improving deliverables.

Recent specific policies have been intended to limit the exploding number of small bearing manufacturers popping up in each province, but local officials tend to go against central policy by encouraging them, polishing their own image taking credit for new business and employment growth. The central government has repeatedly warned provinces not to encourage numerous small manufacturers but support growing the existing larger companies, and pay more attention to improving infrastructure. Under-the-radar manufactuing also goes against the Five Year Plan by disproportionately adding pollution and putting more strain on the power and water infrastructure -- infrastructure improvements which have been ignored in favor of supporting new startups.

Another target will be create programs to bring China's domestic bearing manufacturers, specifically large precision bearing manufacturers with potential wind turbine applications, up to the quality and capacity of the best international suppliers now dominating the domestic market. Domestic production of wind turbine bearings is also be a concern in the energy conservation platform which puts specific targets on sustainable power generated by wind turbines, often down to the number and size of of those turbines.

Although some domestic content requirements for wind turbines were recently reduced or eliminated, it only reinforced the central government's recognition that it needs to provide incentives and funding to help China's bearing industry catch up to the global market. In order to do that, the government said it also recognizes the need to create a better infrastructure to promote precision machine tools and metalworking equipment.

Beyond government-supported domestic bearing manufacturers, the 12th Plan is likely to include an even more open playing field for foreign-owned companies. Already, there has been a long step back from the idea any new plant in China must have a domestic partner. Going beyond that, actually encouraging foreign-owned manufacturers to set up shop in China, is likely to be part of the 12th Plan.

The 12th Five Year Plan 5251R9N7 is likely to be China's most ambitious, challenging, and most concerned with external forces in the world economy. For the fist time ever, Chinese officials have invited international experts in banking, environmental policy, economic policy, and other areas, to provide input in shaping that Five Year Plan. Face-to-face meetings, seminars, and conferences are being held by the National Development and Reform Commission (NDRC).