| Machinery Industry is an important basic industry of China’s national economy, and with its major industries and subsectors, it has been a key-player of Chinese export-oriented economy. China is now trying to grab market share in high-tech machinery manufacturing to further expand its volume trade in the global panorama as well as to help China in becoming a domestic market-driven economy.This paper analyzed EU-China economic interactions in the machinery industry focusing on China’s governmental interactions, trade and investment flows as well as EU barriers. It will be pointed out how European machinery manufacturers generate substantially higher profit margins due to their technological superiority, while the majority of Chinese manufacturers are still in low-end value production chain. In addition, a case study will be illustrated as empirical proof of this China-EU comparative analysis. This paper will argue that if China’s machinery industry want to become leader in the high-tech production, it will need to move up the value chain, upgrading and invigorating its sectors boosting both R&D and investment, while lessening or eliminating China-EU trade barriers which hampered trade composition improvement. |
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