The term “China shock” originally described the wave of cheap toys, textiles and basic electronics that flooded European markets after China joined the World Trade Organization in 2001, hollowing out low-end manufacturing. European industry escaped by moving up the value chain into higher-end goods.
“China Shock 2.0” describes a newer wave of exports, this time electric vehicles, chemicals, machinery and power-generation equipment. Unlike the situation two decades ago, Chinese manufacturing has now followed European industry up the value chain, leaving little higher ground for European companies to retreat to.
Besides, tariffs imposed by the Trump administration have narrowed Beijing’s access to the United States market, making Europe the largest remaining open destination for the surplus.
Besides, tariffs imposed by the Trump administration have narrowed Beijing’s access to the United States market, making Europe the largest remaining open destination for the surplus.