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VDMA Assesses Chinese Competition

The Textile Machinery Association within the German Engineering Federation (VDMA), in collaboration with the IMPULS Foundation and international management consultancy Droege & Co. GmbH, both based in Germany,  has prepared a study of achievement potential and strategies of the primary Chinese competitors to German textile machinery manufacturers. The study analyzes the association's own data and data gleaned from visits to 30 leading companies representing every significant Chinese textile machinery sector.

According to the study, Chinese textile machinery manufacturers are experiencing intense competition among themselves. It is expected that those that prevail will have lean and fit operations and the determination to take advantage of low-wage labor and the sale of standard machinery to produce commodity products for developing markets.The study offers suggestions to help German companies plan strategies to compete with Chinese companies. These include ignoring the situation, playing by the same rules, reviving Sino-German cooperation, forming global partnerships, acquiring or merging with other companies and innovating.

In related news, the Textile Machinery Association, in cooperation with other machinery manufacturing sectors, will expand VDMA's China offices this spring in Beijing and Shanghai in an effort to support its members that export machinery to China.

April 2005




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