About the same time as Sany's Putzmeister acquisition, China's XCMG bought a majority share in Germany-based concrete-equipment maker Schwing. All the concrete pumps Irving sells now are owned by Chinese companies, and several Germany-owned brands remain, says Irving. "The Chinese swooped down and bought up when the euro was low."

But the party soon ended. In 2011, the Chinese government slowed down expansion to cut inflation and entered a period of overcapacity, says Yengst. "They thought it would go on forever and ever." He suspects the mostly government-owned companies were made to continue high-level production—meaning, roughly 150,000 extra machines were made—even as the market slowed.

According to local news reports, $250 million in government subsidies went to Sany and $50 million went to Zoomlion during 2011-12. Still, the effects of overproduction are felt to this day. "Now, they'll go anywhere and do anything from a pricing standpoint to get rid of machines," says Dobre. This includes no down payment and 48-month lease terms, instead of the usual 20% and 36 months, he adds.

The deals make life hard on Western OEMs in China, says Manfredi. "A large percentage of the customers in China are owned by state governments, like Norinco, a big customer that is owned by the Chinese army," he says. The result is an uneven playing field. "It's pretty easy for a company that has state backing to sell machines, but a company that doesn't has a difficult time," says Manfredi. While Sany has a 14% share of China's excavator market, Caterpillar and Komatsu have 8% each, according to Credit Suisse.

However, local manufacturers are feeling the effects of loose financing and struggling to collect funds from first-time buyers, says Noriyuki Ichihara, Komatsu's senior executive officer in China, in a November research report by Credit Suisse. They are now tightening terms. Sany has increased its normal down payment to 20%, which trended at 10% to 15% over the past five years.

Competition between Chinese companies is fierce. Take the Nos. 5 and 6 slots on KHL's list: Sany and Zoomlion. According to one local news report, Sany outbid Zoomlion by 220 million euros for the Cifa purchase, but Zoomlion got approval from China's National Development and Reform Commission (NDRC), so Sany lost. When Putzmeister was up for bid, Zoomlion again was the only company to get NDRC approval. Putzmeister met with five Chinese companies interested in a takeover, said Xiang Wenbo, president of Sany Heavy Industries, in a public statement, adding, "Why did only Zoomlion receive approval?" The report claims that government officials stepped in and approved Sany. "It's Sany's turn now," quipped a Zoomlion official.

If any press is good press, Sany America should be happy. It is noted for building in Georgia a $60-million assembly plant, which analysts say is mostly empty, and fighting two patent-infringement lawsuits from crane maker Manitowoc Inc. A source close to Sany America tells ENR that its ex-CEO, Tim Frank, resigned earlier this year because the parent company undermined his direction. Sany America President Jack Tang denied this, and Frank declined to comment.

Building a manufacturing empire is not about just global domination, Rimaz says. China wants its domestic manufacturers to improve the lives of its citizens. "If you can do that, you can do business in China," he says. Heads of foreign OEMs, such as Cat and Komatsu, predict 5% to 10% growth in total machine units in China in 2014. Overseas manufacturers gained 60% of the excavator market in 2013, according to the Credit Suisse report. It predicts good things to come for the country: Chinese production bottomed out this year and shows "an improved growth outlook" for 2014.

SDLG's Quinn knows that entering North America is an uphill battle, but he's optimistic. "We can create this segment, dominate it and it's sustainable," he says. "We have a proposition nobody can match."