The technology will not be Chinese but European. The problem here is not as much the low quality of the 'made in China' label mark, but the trends of delocalisation of the industry throughout Europe and also the accessability of European technology to the Chinese.
There is an increased trend in the European industry for delocalisation and relocalisation outside Europe, with the subsequent job losses throughout Europe. Profits maximisation and competitivity call for a reduction in production costs. Under such scenario, it is not possible to cut wages in Europe to the levels of wages in emerging countries. The costs of living (inflation) makes it simply impossible.
To solve this endemic problem (inflation), governments throughout Europe would have to implement drastic policies on consumer prices so that lower salaries allowed employees to meet the costs of living.
But in a Liberal and materialist society like the one in which we live this is called state interventionism and, despite secularist trends, these are heretical views of the market economy.
So, the solution for the European industry lies in dismantling the plants and factories in Europe, leaving tens of thousands of workers in Europe on the cold, and taking those jobs to emerging countries (or, depending on the nature of the industry, countries under development) where state intervention is not anathema and where their low costs of production will help them to compete in the international markets and further to maximize profits.
Now, another question here is what is left for Europe's workers. Or, if you prefer, what will Europe produce in the future. Financial commodities? Innovation? The latter could even be an escape if terms on knowledge gains were not as short as they are. But the secrets of new technologies do not last long these days. See as an example the mass (and cheap) production of computer components in countries like Taiwan, China, Singapore, Korea or India.
Other sectors like Agriculture have already been largely sacrificed to industry in the past and still they are being sacrificed today. EU policies have granted unlimited exports exempt of import tariffs (or with low tariffs) to agricultural products from third countries in order to obtain export deals for EU industry production. This has rendered food production in Europe a non viable sector.
As a consequence, people throughout Europe have abandoned the lands which no longer allow them to earn a minimum decent living and they've flooding the industry. But now the industry is going somewhere else. We don't produce food nor will we produce the commodities to buy the food in the future if these trends continue. For Europe the title for this nightmare should be "Globalisation - The Sequel".
For one given item produced in Europe, if you buy it in China or India and import it into Europe with the costs of thousands of miles transport and import duties, you will still be able to sell it at a more competitive price than the item produced in Europe and still make a larger profit.
So industry is left with no other option but producing at the same costs as in those countries, which can only be done by producing in those countries.
But that's still only the tip of the iceberg, big as it is. The Industry is not only taking the jobs there, but the technology too. Time passes swiftly and, as it does, those countries gain the knowledge of the European technology and production methods and become able to make their own production independent of the European Industry and to compete on a one to one basis with European technology and prodution quality methods.
There is still much cheap quality 'made in China' and 'made in India' products in the markets. But increasingly you may see items made in those countries and which are undistinguishable from those made in Europe.
In the long term, they will be producing both cheap and good quality. What will then be left in Europe?
Look at this news item that I posted on January 2005:
"Car Industry an Endangered Species in Europe"