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Nowaday, it is not surprized that foreign enterprise acquired domestic ones, the most eye-catching things are counter foreign acquisitions.
Earlier, the acquisition case between Xuzhou Construction Machine Group(XCMG) and Carlyle Group had been suspended for some industrial security reasons. Now, a new debate about LYC and Schaeffler Group are beginning.
July 3, CBIA(China Bearing Industry Association) submited their viewpoint on LYC case to CMIA(China Machinery Industry Association), expressing their rejection against this international acquisition. They proposed that the acquisition may threat national industrial security and there are no successful precedents of such acquisition, featured by conceding market share to introduce technologies.
Foreign acquisition and economic security have become the hottest issue in recent years. When it comes to foreign acquisition, opposition can be heard almost everywhere, from professionals or average citizens. In the course of 2006 NPC and CPPCC, restriction of foreign acquisition has been put on the schedule.
In fact, we should not seek administrative solution to restrain foreign acquisition regardless of the existing laws and regulations. In 2002, our state authority had published Foreign Investment Guiding Catalog, in which clearly stated what kind of industries in China can be invested or even acquired by foreign enterprise. But bearing and construction machine industry are not listed in that catalog.
Although, there are still other official statements, regulations and policies. None of them can be cited as an excuse for today's counter foreign acquisition.
However, it's not to say that people's rejection on LYC and XCMG's acquisition case are irrational, most of them are thinking about the cases from the aspect of economic security. After all, LYC is the leading producer of bearings for Chinese military and aerospace use.
We all know that developed countries, like American, always place some non-technological barriers, particular the security ones, to foreign investors. But all their barriers were based on specific legislation and controled by certain department. In American, they have CFIUS(Committee on Foreign Investments in the United States) to deal with such foreign investment related cases.
Based on our existing law system, the state authority should not do anything to influence either XCMG or LYC's acquisition case. However, the most important thing left to us is how to prevent similar cases in future.
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| H3944HG bearing | 220 | ||
| H3944 bearing | 220 | 260 | 96 |