It's not so much about having to import the specialised steel it is the precision manufacturing on such a such mundane component which until now I would not have known and the material science involved. This first step of making the steel followed by the CNC machines that make the tips will have a follow on effect in the manufacturing of bearings, which is the final goalIt still costs China money to make the ball barrings domestically. That is more than just the variable costs like materials, energy and labour etc, but also fixed costs like investments in machinery and R&D.
If you subtract all of that, and your annual savings is probably a tiny fraction of that $15m total.
All of this is just another piece of western feel-good-by-putting-someone-else-down gutter trash reporting. And they couldn't even get that right, because they didn't even take notice until after China had closed that tiny, insignificant gap. In fact, the joke is on them, because I seriously doubt there are any British or American firms making these kinds of ball barrings today.
Does that mean they are now more backwards than China? Of course not! China didn't used to make these for the same reason the west doesn't make a lot of other things now - it's just not worth their while to bother.
The only reason China bothered was because the PM made it a political point of pride.
Not only are the profits tiny, but firms don't have infinite R&D budgets, in order for them to develop this ball point barring, the company would have had to cancel or postpone other projects that would have been more valuable.
As such, I actually see this is a negative, where top political leaders are causing disruptions on a whim.
The sentiment of self reliance is sound, as we will probably find out soon enough with Trump picking trouble. But this example shows how such whims can be wasteful also.
The PM didn't really care about ball point pens, and it makes zero different in reality irrespetive of whether China makes them. He just used that as an extreme example to make a point, if you will excuse the pun. But a Chinese firm spent 5 years and $8.6m because of it.
It's not hard to imagine any number of similar scenarios, where a throw away remark or minor point made by a top official gets taken way too seriously, and not insignificant resources are diverted to projects those officials don't care about and would probably forget before they even finished the conversation.
It's by no means an uniquely Chinese problem, but I would rate that as inifitiely more of a problem than ball point pen tips.