Chinese industrial companies have evolved into serious competitors for German companies. The success of companies such as Lenovo, Haier, Huawei or CIMC is a clear proof of their competitiveness. What is interesting is that they do not follow the traditional Western management principles. The competitive behaviour of Chinese companies differs from Western companies similar to the Japanese with their revolutionary management concepts such as Lean Management, Total Quality Management or Kaizen. The lack of knowledge on Chinese competitive behaviour often leads Western managers to making the wrong decisions in terms of sustaining or extending their market position as opposed to Chinese competitors. This article gives a detailed description of the competitive behaviour of Chinese companies and offers a guideline for managers on how to deal with emerging Chinese challengers.
