Germany most exposed to China Shock 2.0 as Western economies face new trade challenges
By
Andy Browne
Kettled twice. Extra chewy, extra trustworthy.
Summary
The article argues that the original "China Shock" that devastated US manufacturing was largely driven by American multinational corporations shifting supply chains to China, not by China itself. As Western economies now face a "China Shock 2.0" — where China exports its own manufactured goods and green technology products — Germany is particularly vulnerable due to its heavy reliance on manufacturing and exports. The piece highlights the disconnect between corporate interests (seeking cheap production) and national interests (protecting domestic industries), noting that this tension is repeating in the current wave of Chinese exports.
Key quotes
· 3 pulledBeijing often gets blamed for the devastation of US factory towns that spawned an opioid epidemic and a populist revolt, but the 'China Shock' was largely a Made-in-America phenomenon — one led by US multinationals.
One of the lessons of the original China Shock was that private capital has no patriotism.
As Western economies scramble to defend themselves against the second China shock, their corporate and national interests are again radically at odds.
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