DIR Return Create A Forum - Home
       ---------------------------------------------------------
       Live Economy Forum
  HTML https://liveco.createaforum.com
       ---------------------------------------------------------
       *****************************************************
   DIR Return to: Analysis and Insights
       *****************************************************
       #Post#: 7--------------------------------------------------
       How is the Chinese growing industrial sector affecting Europe?
       By: liveco Date: September 11, 2013, 12:49 pm
       ---------------------------------------------------------
       For the past decades, Chinese Manufacturing
  HTML http://mecometer.com/infographic/china/manufacturing-statistics/<br
       />had a very bad reputation of having low quality, no innovation
       ,
       trademark and patent violations .... etc...
       Yet, Analysts are viewing a change in this pattern.
       So the question is, how does the Chinese Industry
  HTML http://mecometer.com/whats/china/economy-sectors/
       affect highly
       industrialized countries like Italy
  HTML http://mecometer.com/country/italy/,
       Germany
  HTML http://mecometer.com/country/germany/,
       Japan
  HTML http://mecometer.com/country/japan/
       and South Korea
  HTML http://mecometer.com/country/korea/?
       These guys answer it well:
       [quote]
       Chinese manufacturers are likely to pose a growing competitive
       threat to Germany in some sectors as they abandon
       low-value-added production and march up market.
       Yet German entrepreneurs express confidence that their
       time-honored recipe of constant innovation will continue to pay
       off.
       ....
       After all, Germany has managed to increase its share of global
       manufacturing exports to OECD countries since 1995 even as
       China's ascent has eroded the shares of France and Italy.
       "There's a lot of competition from China, but thank God the
       Chinese are not as innovative as we are - they are known for
       copying things rather than bringing new developments onto the
       market, so they tend to be a step behind us," said Sabine
       Herold, co-managing director at DELO Industrial Adhesives, based
       near Munich.
       [/quote]
       another point is that the German Companies are hopeful than once
       Germany shifts from an investment economy to a consumer economy,
       what ever share of exports Germany looses in the world market,
       will make up for it in exports in the growing Chinese Market.
       Still I think the German companies are being too optimistic and
       too confident. Let us take the Solar Panel market as an example,
       This is a battle that Germany already lost to China
       [quote]The risk for Germany is that in areas less specialized
       than precision engineering Chinese firms will be able to harness
       home-grown or acquired technology to economies of scale in a way
       that Germany, a country 15 times smaller, simply cannot match.
       This combination of good-enough technology with massive
       production capacity was the reason - not alleged dumping by
       China - for the shakeout in Germany's solar power sector,
       according to one German executive.[/quote]
       Read more on:
       Analysis: German business confident as China shifts gear
  HTML http://www.reuters.com/article/2013/09/11/us-china-economy-europe-analysis-idUSBRE98A09G20130911?feedType=RSS&feedName=businessNewss
       *****************************************************