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China moves into luxury goods and machinery, challenging Europe's industrial dominance

Economists describe China positioning to compete across German industrial sectors

Economists Brad Setser and Sander Tordoir characterize the dynamic as China having already displaced significant German industry market share and preparing for deeper competition. The shift reflects Chinese suppliers' technical maturity—built partly through decades of partnerships like Volkswagen's manufacturing presence in China since the 1980s—enabling them to move from supplier roles to direct competitors.

Economists describe China positioning to compete across German industrial sectors
fortune.com

“China has already eaten much of [the] German industry's lunch and is preparing to start on dinner.”

Brad Setser and Sander Tordoir, economists

Gucci (Kering) Luxury fashion houseKer Gibbs Former president, American Chamber of Commerce ShanghaiHoward Yu Professor of management, International Institute for Management DevelopmentBrad Setser and Sander Tordoir EconomistsTorsten Slok Chief economist, Apollo Global Management

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