China does not just make cheaper technology: former ASML chief Peter Wennink says it is also better in a growing number of fields. He believes Europe must act urgently to keep its industry competitive.
Wennink says Europe has relied on its technological lead for too long. European companies need to innovate faster to keep up with Chinese competition.
Peter Wennink, former head of chipmaking equipment supplier ASML, believes Europe has underestimated Chinese competition for too long. In an interview with the Polish newspaper Gazeta Wyborcza, reported by Computable, he warns that inexpensive Chinese products could threaten millions of European jobs.
China is not just cheaper
Wennink highlights an important distinction. Chinese companies can sometimes offer lower prices thanks to government subsidies, but he says that does not explain everything.
They also produce more efficiently, work faster and improve their technology rapidly. That makes it increasingly difficult for European manufacturers to compete.
Wennink wants Europe to be able to introduce temporary import tariffs or quotas when Chinese overproduction threatens European industry.
But he says that protection should last no more than five years. European companies must use that time to innovate faster themselves.
That is the biggest challenge. China has invested heavily in new technology and production capacity for years. Europe will need to strengthen its own industry to keep pace.
