Part 10/14:

Historically, China's entry into the global economy triggered what is known as the first China shock, resulting in the loss of around 5 million manufacturing jobs in the U.S. alone. This wave accelerated existing automation-driven declines, but the recent growth of China’s high-tech capabilities and industrial subsidies signals a potential second China shock, this time in advanced manufacturing.

This new wave is characterized by a resilient and technologically advanced China that combines:

• A 30% share of global manufacturing

• Relatively low wages (still competitive)

• Unmatched technological capacity

• Sustained state support and industrial policies