German media reports that Chinese companies pose a threat to German manufacturing

by:Gewinn     2022-05-18
According to the German media, the latest report of the foundation of the German Machinery Manufacturing Federation pointed out that Chinese competitors are posing a growing threat to the German machinery manufacturing industry. The survey shows that Chinese companies no longer only occupy the market of low-end cheap machinery and equipment. According to a report on the website of the German newspaper Die Welt on February 18, 2014, Reinhold Festeg, president of the German Machinery and Equipment Manufacturers' Federation, warned: 'They are also changing in the growing mid-market and in the service sector. stronger, and in the medium term, not only in China.” Therefore, he believes that German companies need to act urgently. Festeger said: 'German manufacturers should not all squeeze on the top of the technological pyramid. The market there is too small. If we only focus on high-tech products, we will walk into a dead end.' Report author, from Eurasia Consulting The company's Daniela Batchel-Herold said Chinese competitors were still technologically inferior to German manufacturers. After in-depth analysis of the situation of 122 Chinese machinery manufacturing enterprises, she said that the gap between the two sides in terms of production capacity, precision, product life and energy efficiency is sometimes huge. However, this advantage should not be a reason for German manufacturers to feel at ease. 'After all, many customers simply don't need the most cutting-edge technology.' Especially in China, the world's largest machinery manufacturing market, which is now far ahead, and other emerging industrial countries, what people usually need is simple solutions. But this made it difficult for German engineers. Festeger knows this too: “For them, every new machine has to be better.” But now, the federation president is calling for a new culture of “quality downsizing”—for example, in the huge Chinese market. Festeger said: 'In China, the greatest potential of German machinery manufacturing is the mid-end technology market. German companies must further cater to this market with their products, otherwise we will gradually lose market share and hand over the entire market to China. Competitors.” The report also said that this is not just happening in the Chinese market. Because the Chinese are also marching into other countries. The survey shows that more than half of Chinese machinery manufacturers are planning to expand their export activities in a targeted manner. The report's author, Batchelor Herold, said the Chinese's actions were 'systematic and aggressive.' At present, China is the third largest exporter of machinery in the world after Germany and the United States. China's exports are now mainly concentrated in neighboring markets such as India, Vietnam and Indonesia, and the next second wave will also export mid-range equipment to Europe and the United States. 'The Chinese have become more realistic, and they find themselves lacking the know-how to enter the high-tech market,' says Batchel-Herold. 'So they're focusing first on markets that demand easy technology.' '
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