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China is already the world's third largest producer of electronics, and becoming a player in the global appliance market. Twenty years ago, U.S., European and Japanese companies started moving into China to supply the local market with household goods. Now those same companies are getting whipped by Chinese competitors. Over the past six years, the market share of foreign TV makers in China has dropped from 70 percent to less than 20 percent. Matsushita opened the first microwave-oven plant in China in 1995. Two years later the Chinese company Galanz started making microwaves and selling them for half Matsushita's price.
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