Ten or fifteen years ago global business was mainly in the hands of a select number of
multinational giants. Small and medium-sized business concentrated on their home markets and
perhaps one or two neighboring countries. Not so any longer. Even the smallest businesses have
realized that they have something to market in distant countries. Under these circumstances
Chinese companies of all sizes in various industries have recently opened to foreign
competition. According to the Chinese Commerce Ministry's new release on relevant report the
Chinese foreign investment reached a new record of 26 51 billion US-Dollars in 2007. This
represented a growth of 25 3 percent compared to 2006. After the quantity expansion the
quality offensive comes silently. Today Chinese companies throw not only millions of T-Shirts
toys or plastic bowls in the international market but also wireless LCD-televisions
telecom-equipment and precision tools as well. Chinese companies have realized that a
competitive advantage based on low costs low prices and large quantities in a global economy
cannot defend itself long. Consequently they focus consistently on innovation and brands. In
addition China's globalization also needs strong mental forces. China does not just want to be
a world factory but instead be an internationally competitive market place that Western
competitors already are. In the involvement of Chinese companies abroad aimed at specific
markets several strategies are recognizable. German and European companies are facing new
chances and challenges at the same time. People must correctly assess the situation and
corporate strategies and business concepts with which they respond effectively and
sustainably. The following questions are the focus: In what areas and branches do Chinese
companies concentrate in German market? Which Chinese companies go abroad? What are their
market entry strategies? What are their competitive strategies? And what are the steps of
Chinese investments? What problems in the Chinese M&A business in Germany? How to overcome or
avoid them? What are other problems? What branches are suffering from Chinese competition in
Germany and EU? Chances or threats? How can German companies face this shift in a global
economy and respond appropriately?
