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Chinese and foreign pump giants start "R&D battles"
The competition between local and foreign brand companies is no longer just about market share—it’s now intensifying in the realm of research and development. After a year of preparation, Fujian Far East Electric Group has taken a significant step forward by establishing Fujian Far East Mechanical and Electrical Products R&D Co., Ltd. on March 8. Over the past two years, several global pump giants, including Germany’s KSB, Villé, Denmark’s Grundfos, the U.S.-based Flowserve, ITT Flygt, and Japanese firms like Ebara, Mitsubishi, and Hitachi, have all relocated their R&D centers to China.
“This shift indicates that the battle for technological leadership between Chinese and foreign companies has entered a highly competitive phase,†said a senior expert from the Shenyang Pump Research Institute. The trend reflects a broader movement as multinational corporations increasingly focus on innovation rather than just manufacturing.
China is transitioning from being a manufacturing hub to a major player in technology-driven industries. “We must pay close attention to this transformation,†said the head of Wiler Pumps China. The company already has a substantial R&D team in the country, with well-structured and targeted research efforts underway.
In fact, over the past two years, multinational corporations have shifted their investment focus from expanding production capacity to product innovation. For instance, Hitachi established an R&D and production base in Wuxi, while KSB opened a wholly-owned subsidiary in China, prioritizing talent recruitment locally.
Meanwhile, local brands are also accelerating their R&D efforts, driven by the diminishing price advantage. At the launch of Fujian Far East’s new R&D company, Chairman Chen Jianming emphasized that the company would focus on theoretical and applied research in pumps, motors, and water supply systems. It aims to attract top domestic talent and implement world-class R&D strategies to enhance the competitiveness of electromechanical products.
Looking ahead, the company plans to build a strong R&D team and achieve a qualitative leap in independent innovation, energy efficiency, and environmental protection, aiming to become a top-tier R&D center in China. However, compared to multinational firms, local R&D capabilities remain limited, with many institutions failing to reach their full potential. Even the early-established Shenyang Water Pump Research Institute only has a small team of dozens.
Qian Yichao, president of the China Drainage and Irrigation Machinery Industry Association, highlighted the long-term nature of technological development, stressing the need for closer integration with the market. He noted that converting research into practical outcomes requires time and strong leadership, along with elite teams to drive progress and boost product value.
Industry analysts believe that before China joined the WTO, local companies relied on low costs and pricing to slow the entry of foreign products. Now, with the end of the transition period, competition has become more intense, focusing on advanced technology, energy efficiency, and environmental standards. Whoever adapts best will win the next round of market battles.
In Fuan City, the motor pump industry cluster has grown significantly, with small and medium-sized water pumps accounting for one-third of national exports. The establishment of Fujian Far East’s R&D company is expected to help reshape the regional industrial structure and promote overall technological advancement.
Fujian Far East Electric Group, which achieved over 200 million yuan in sales in 2007, is now investing heavily in R&D. As market demands rise, especially in high-end sectors, the group faces challenges due to a lack of core technologies. “Many government procurement projects were lost because we couldn’t meet the technical requirements,†said Chen Jian, the general manager.
To address this, the company is not only improving its own product structure but also focusing on integrating industry, academia, and research to strengthen its core competencies. In addition to Fujian Far East, other leading domestic pump companies like Tianjin Ganquan have also partnered with top universities to establish their own R&D centers.
“First-rate research requires first-rate talent,†said Chen Jianming, who plans to recruit and train top R&D professionals nationwide. This signals a new wave of competition for skilled researchers, with demand for high-level R&D talents expected to reach tens of thousands in the coming years.