China companies see Germany as EU springboard (6)

"They are not encouraged to make any decision before they are sure the deals can bring what they want," he said.

Since the financial crisis, Chinese companies have been aggressive in expanding abroad. In 2012, China's overseas direct investment in the non-financial sector grew by 29 percent year-on-year to $77.2 billion.

In their hunt for overseas assets, Chinese firms are increasingly targeting those owning strong research and development capacity, well-known brands and established global distribution networks.

Wang said,"China cannot compete with Germany in manufacturing. China needs to learn from Germany and to catch up with it. It will take at least two to three decades." Germany is the most powerful manufacturer worldwide, as well as the second-largest manufacturer.

Despite the economic slowdown, investment on research and development in Germany rose by 14.8 percent in 2011, twice the global average growth level during the same period, and compared with the growth of 5.4 percent in the European Union, according to German statistics.

By 2030, Germany will add investment worth 350 billion euros to develop the new- energy industry.

Wang said,"The period when China promoted its manufacturing by merely leveraging the low cost is becoming history now, and the new era of Chinese companies enhancing R&D and branding is coming."

Liang Wengen, chairman of Sany, said recently that the company expects to expand its exports and global sales network through the deal with Putzmeister. The company aims to see 40 to 50 percent of its sales revenue coming from abroad in five years, compared with 15 percent in 2012.

Zoje is now in talks on a wholly owned acquisition deal for Germany's PFAFF Industriesysteme und Maschinen AG, one of the world's leading sewing-machine makers, who failed to reshuffle its assets when its capital chain broke due to the financial crisis.

"Why did we enter and will continue to invest in Germany? It's very simple. We need to enhance the innovation capacity, especially in the high-tech sector. We need to gain access to the global market. We need to promote the brand, and we need to improve the management. Germany can meet all the demands," said Chen.

But, "anyway, I am confident it's only a matter of time before 'made in China' stands for high quality and premium brands".