In 2011, China surpassed Germany and the US to become the largest source of high-tech products imported by the Netherlands, a barometer of the European economy.

China was expected to lead the trend and maintain the top position in 2012 and beyond, Li predicts.

"Chinese manufacturers can compete with European players in sectors like machinery equipment, new energy and aerospace, but in many industrial sectors and traditional industries, China's design, technology and branding are still weak," says Zhou Shijian, a senior trade expert at Tsinghua University in Beijing.

Examples of competitive Chinese companies are not rare. The Warren Buffett-backed Chinese battery and carmaker BYD Co Ltd, which entered the European market in early 1999 by selling batteries, began to crack the high-end business of electric buses in recent years.

"The European market is the key to our success, and we expect to win the European market through our high-end products," says Chen Yongping, European senior manager at BYD.

The company is well on the way. In January 2012, BYD beat two European counterparts from the United Kingdom and the Netherlands to win an order of six electric buses from the Dutch government.

It was the first electric-bus order the company has got overseas, and also the first order that the European market had ever had.

In October, BYD secured another order of 50 electric cars from London cab service provider Green Tomato Cars.

The company recently gained EU approval to sell its electric buses in all EU member states.

"Renewable energy is what Europe puts emphasis on, and electric buses will lead the trend," said Chen.

"We are glad to see that BYD is four to five years ahead of European products in the sector, thanks to research and development," he added.

Long way to go

Despite the progress that China has made in the past 20 years to lift its reputation as a global manufacturer, many executives and industrial insiders still believe China has a long way to go before it could be at the forefront of high-technology innovation.

"Made-in-China goods will eventually become the gold standard worldwide. It's a matter of time," says Chen Yongwu, general manager of Zoje Europe GmbH.

But "for the time being, there is time for Chinese manufacturers to catch up with their peers in Europe, and Germany in particular, in high-end and value-added goods", he says.

For example, Zhejiang-based Zoje Sewing Machine Co Ltd, the world's leading industrial sewing-machine maker, made two acquisitions in Germany in a bid to improve its technology.

Echoing Chen Yongyu, Tan Zuozhou, president of LiuGong Poland, says: "There is room for us to improve in terms of technology compared with the top industrial brands in Europe. We also have a lot to do in branding."

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