What is ‘China Shock 2.0’ and should the west be worried?

In 2025, profits in China’s high-tech manufacturing sector rose 13.3% year on year, outpacing the broader industrial sector by nearly 13 percentage points. That number sits at the centre of a debate now rippling through trade ministries, economics departments and editorial pages across the West. Where the China Shock 2.0 narrative comes from? This expression bears similarity to the original China Shock, which refers to the decline in manufacturing jobs in developed economies after the country joined the WTO in the early years of the new millennium. The revised version captures the fear of China’s fast encroachment on industries like…