Because, like that Jan Borgonjon founding partner and president of Chinese consultant InterChina: “China is the new factory in the world.” Chinese industry has become one in recent years High-tech producers developed, at low cost. And China became one at the same time Innovation drivers something that will especially hurt the Europeans.
Jan Borgonjon is Belgian but has lived in China for 40 years. There he advises Chinese companies that want to gain a foothold in China Joint Ventures would like to enter into. And he checks the market every New Year: What do his (European) customers think about China, how will the new year develop?
High-tech Manufacturer
Die Key message his study for the year 2025: China is becoming one global topic – as a competitor, partner and source of innovation. And all of this under extremely low cost conditions. “For larger companies, China has to be the place Partner become, otherwise you are no longer competitivesays Borgonjon. The local Chinese producers are fast, well financed, very customer-oriented and will Export use it to scale your business. “They are also good,” says the China expert. Just as the Europeans’ lead in automobiles has been eroded, other industries will also suffer.
The immense advantages of Chinese production: cheap raw materialsa high degree of automation (according to Borgonjon, China only needs half the number of personnel in production) and a Low price environmentso hardly any inflation, cheap energy and workers as well as one reliable supply chain. “That’s 20 to 40 percent Cost advantage“In some industries even much more,” explains the expert. In addition, China would “Megatrends” benefit like no other market in the world. Borbonjon: “Them Decarbonization in China is impressive and they are pursuing this strategy much better than the Europeans.” China would also have an incredible high degree of digitalizationthe demographics (the young) play into China’s hands and at the same time the field of geriatric care would be completely relaunched.
The time when China extracted ideas from European factories is long gone. China has long since become the High-tech Manufacturers developed for the world and at the same time be one technical innovator.
How can the world adapt to this? According to Borgonjon, Europe would have no other chance than to assert its market Customs duties to protect. This would be a new period of Trade disputes between Europe and China. Similar to the American approach: up to 100 percent tariffs on goods from China (e.g. cars) and a far-reaching tariff Investment ban for Chinese companies in the USA – and vice versa.