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The strategic mistake of Italian system to meet the challenge of China Chinese

Excerpts Chinese Affairs

was made a fundamental mistake from the part of the Italian economy than China. An error by the dramatic effects of which it is now difficult to escape. The China phenomenon has exploded over the past 10 years, with a peak in the last few years, but began quietly 20 years ago.
What was the reaction of the Italian industrial economy in the wake Chinese? Subject to rare and commendable exceptions, the reaction was the same one that has had the appearance (30/40 years ago) of Japan phenomenon.
When Japan began to invade in the years 50-60 the Western world with its cheap products (plastics, electronics, etc..), The Italian system was thought that this was a temporary phenomenon, a fire straw that would have died within a few years, imploding in its own contradictions (the same as those we find today in Chinese),
Needless to say it is over, what has become Japan and its economy, the world scene, is under the eyes of all.
With China has adopted exact same analysis.
Rather than embrace this new world to understand the threats, to assess their chances and opportunities, has snubbed the phenomenon, certain that sooner or later it would be deflated, and everything would be back to normal.
Italian companies have so entrenched to defend their market shares worldwide, with two instruments: a smart and one not.

Large companies are able to think big and come with real capacity for innovation and development, have intensified their intrinsic values \u200b\u200band the value added of their products, creating a barrier to access for Chinese products.
Creativity, style, design, technology, beauty, short, Italian Style, have been the engine for the general development of the Made in Italy, building very high barriers to entry to their markets, protecting these companies from the threat of China, and allowing them to increase profits, which are now using for its massive commercial investments in China .
This was the intelligent tool.
tool, let's say, less intelligent, it was the valiant defense of market share through the erosion of margins. He tried to keep that market positions, customers, quotas, trying to meet the competition of the Chinese side of the price, with the obvious result of erosion of margins. Was a suicidal attitude, which has resulted in the impoverishment of the companies, who are now unable, financially, to cope with increasing the level of technology and aesthetics in China, which is threatening even the most sophisticated productions. On the other hand, this policy has not always guaranteed the maintenance of market share, of which Chinese companies are gradually a hold on the world scene.
When it was realized that the battle against the giant Asian trade could not have been overcome in this way, we passed a loud voice to the request of customs duties and various protectionism against Chinese exports, arguing that Chinese companies did the dumping their products, without mentioning that 60% of this export is done by foreign companies or companies owned by foreign capital. The typical in the foot.