Thats true but Germany is still too expensive. While other countries are getting better at the quality point Germany doesn't get much cheaper for production. I think if these thinks don't change Germany will get into trouble.
Cheap labour in other countries isn't an infinite resource, I've seen estimates that in about 40-50 years the difference will be gone: China and other countries that currently have cheap labour will have become so enriched that they will have a middle class and social makeup similar to ours, and not so cheap labour anymore.
You're thinking like the typical German it seems. What you should know:
- Other "cheaper" countries are getting more expensive as well, at a staggering pace.
- In Europe, Germany is actually much cheaper than 10 years ago.
- Currently the employment for qualified persons is doing very well
Germany's problem is rather that it's going out of qualified engineers at a very fast rate, thus accepting immigration should be a key politic.
Germany's politicians and CEOs have been very good at scaring people to keep their salary down, but if you look at the state of workforce now you'll see that all this doom speech that all jobs are moving to China and India was not quite true.
It's not too expensive. They lower cost as much as they can. The only way to get any cheaper would be decrease the quality.
Personally, I think that if all capitalism can ever hope to give us is cheap garbage then it's a failure (I don't think that is all it can give us, but some people seem to).
(I'm from Germany)