For German technology, precision casting processing made in China has risen

Germany is the teacher of China's precision casting processing industry. A hundred years ago, a hundred years after the gift, still is. In all kinds of exquisite German precision casting processing pictures, people sigh Germany's high-precision technology, professional quality of workers, that is the "transformation" of high-end precision casting processing. Germany's domestic machinery industry is having a good time. Fast-growing Chinese competitors pose a serious threat to the dominance of German companies in world markets.

Strong opportunities for Chinese precision foundry processing enterprises to enter the European market

In the past few years, Chinese companies have driven the growth of the global mechanical precision casting and processing industry: the share of Chinese companies in the world market increased by more than 50 percent in four years, from 23 percent in 2008 to share in 2012. This growth clearly had a negative impact on German precision foundry processors: their world market share fell from 12 percent to 9 percent over the same period. "European machine precision foundry processors must realize that the competitive environment has changed and must respond to more visible threats or they will be outgunned by aggressive challengers from China," the authors wrote. China's precision foundry processors have benefited to a large extent from the country's abundant cheap labor and high-volume supply. High yields make their production cheaper. High demand in the domestic market and support from the Chinese government have also helped Chinese precision foundry processing companies. These advantages are reflected in the report's data: Chinese precision foundry processors are said to have increased their share of the global construction machinery market from 3% to 15%, a fourfold increase between 2006 and 2011.

Emerging industries promote the rise of precision casting processing in China

Even more impressive is the growth of precision foundry processors for telecoms equipment and wind turbines: their share of the global market has increased from a few percentage points to about 25%. The rapid development of emerging markets has also led to the rise of Chinese precision foundry processors. Many customers in these markets do not want the cheapest machine, but they also value a cheap price and are willing to sacrifice quality for it.

Chinese precision foundry processors have achieved great success in providing niche products between cheap products and expensive high-tech products, usually from Chinese precision foundry processors have replaced German competitors in four sub-industries, including data processing machines, electronic circuits and casting molds market leaders.

However, Chinese precision foundry processors are moving away from massive government support for the high-tech sector and are therefore in direct competition with German mechanical precision foundry processors. Chinese PRECISION foundry processors are now very strong in the low and medium technology sector and are already part of the leading German precision foundry processors. In the long run, Chinese competitors will be able to accumulate this experience to prepare for higher technology areas.