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       #Post#: 7--------------------------------------------------
       How is the Chinese growing industrial sector affecting Europe?
   DIR By: liveco
       Date: September 11, 2013, 12:49 pm
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       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.
       >
       >
       >
       --- End 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.
       --- End 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
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