Dragon Storm – How China and Co. conquer the West

from Perpetual Assets

This article was referred to us from some very connected people wishing to remain anonymous. The text below has been translated via Google from its original source a German website, Kopp Online.

Coming from Asia and South America hurtles an industrial invasion army to Europe. There are rapidly rising new corporate champions, who have grown up home in China, India and Brazil and now pounce with well-filled coffers over the western competition and the local markets. This “Dragon Storm” describes Markus Gärtner , who as in 27 years Business Journalist of the United States, Southeast Asia, China and Canada reported for German newspapers, in his new book for the Kopp Verlag. Janne Kipp has spoken for our editors with the author about his book.

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Kipp: Mr. Gardener, you have brought out at Kopp at Christmas a book under the title Dragon Storm attack China and other emerging countries portrays the West. Is this a good timing? The major emerging markets make precisely pretty tired. Where will this boost?
Gardener: This is not a contradiction, quite the contrary, in countries such as China large overcapacity was created during the boom of the past decade, which has reduced the profits in many cases. More, the wages have risen rapidly since years in double digits and have reduced the distance to the west expensive. Who is more expensive, just has to be better. And now languishes in China, Brazil and India, the economy – measured by the current lifestyle full steam numbers – and the best company there new markets have to look overseas to continue to grow …

Kipp: … the bobbing world economy so accelerated this expansion …
Gardener: Exactly. The emerging companies from emerging markets must swarm in the rest of the world if they want to survive. You have profit margins that are often as thin as razor blades, they need lot of business, including absolutely new customers abroad. And at home, domestic markets are often saturated.

For their attack on Western, especially American and European markets, these climbers have well-filled coffers from boom times. Or they obtain capital from western investors for the attack on their markets, as in the autumn Alibaba has made ​​the biggest IPO of Economic History in New York.

Kipp: You speak of a veritable invasion army which is coming now. Who are these companies?
Gardener: They come from very different industries. So far, it was mainly state owned companies from China about securing raw material sources overseas. But now come many private companies. And are targeting markets where we Germans are also strong with our export company, mainly machinery and equipment, electronics, to high-speed trains, where the two largest companies in China have just given a fusion known to attack the world market. The Chinese have launched an offensive on the big rail projects in the world in Europe, South America and Southeast Asia months ago, the get especially companies like Siemens and Alstom to feel …

Kipp: … with consequences for local jobs …
Gardener: … of course. The title of the world’s leading exporter, we had already proposed. Now comes even more. Since hanging off tens of thousands of jobs. That extends to telecom equipment manufacturers like Huawei , which in Europe – and Germany – have thousands of well qualified people and serve 45 of the 50 largest telecom networks in the world with their devices. The plug 14 percent of the sales proceeds in the development of new products, and every third employee is somehow involved. With piracy has nothing more to do. Also remember to have the world’s largest PC maker Lenovo , or to the in Germany still almost unknown smartphone maker Xiaomi that with a whole new business model in just four years out of nowhere to global number three behind Apple and Samsung has risen.

Kipp: How can such a thing, the Chinese copy but still like champions, complains the entire western industry ….
Gardener: The Chinese accelerate research and development like crazy. You have already overtaken the European Union in terms of R & D expenditure per capita. In R & D services they export more to the EU than they shop there. And thousands of Chinese climbers submit your website to many patents and utility models for European markets at. Indian generic companies are, for example, already the largest foreign drug supplier in the USA. Brazilian aircraft manufacturer Embraer dominated large parts of the world market for regional jets. The Chinese are building their own aircraft and will soon appear so on the world market.

The Mexican Cemex is the largest cement producer in the Americas. From Brazil’s leading meat producer in the USA. Comes Burger King is owned by the richest man in Brazil. China is Germany, which get tangled up in the energy transition, already the role as a global beacon of hope for renewables in dispute. China is already the world leader in the “M2M” -Markt. These are devices and machines that are interconnected through the Internet. According to the GSMA , the global association of mobile operators, China denied in 2013 with 50 million devices connect over the Internet is already a quarter of the global M2M market. I could extend this list still strong.

Kipp: How is this thrust into existence on innovations in emerging markets?
Gardener: The emerging companies, the new champions, who settled there in the forefront of the domestic markets – and are now starting to expand – are often government-sponsored giants. They get cheap land and loans to state-owned banks to Mini interest to large orders of government. They supply domestic markets that are as large as entire continents. In China and India is also growing rapidly approach a huge middle class that has more money and better products will.

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