Europeans are outraged that despite being a whopping 5.5% of the world population, they now make merely 43% of global capital goods exports. China, at 16% of humanity, has 24%! Remember: no matter how much they whine and the Chinese gloat, it's a story of a *reigning incumbent*.
🇪🇺 🇩🇪 China is destroying the economic heart of Germany.
The Mittelstand, is being displaced by Chinese competitors.
China now controls around 1/3 of global machinery production.
Chinese firms are closing the quality gap and selling some machines at up to half the price of European rivals.
Europe’s share of global capital goods exports has fallen from 54% in 2005 to 43%.
China’s share has increased from 7% to 24%.
Europe needs a much tougher position against Chinese industrial overcapacity, faster industrial investment and cheaper energy to defend its manufacturing base.
