China dismisses ‘China Shock 2.0’ concerns, says industrial growth benefits global markets

Washington: China has rejected warnings of a new economic “China Shock 2.0,” saying its expanding technological and industrial strength offers countries greater market access, deeper cooperation and new investment opportunities rather than threats.

Liu Chang, spokesperson for the Chinese Embassy in Washington, said Friday that China’s emerging technologies and products would advance global development and make advanced technologies more accessible.

“Some, however, see it through the lens of anxiety, and have even invoked the so-called ‘China Shock 2.0.’ Yet in the international interactions it is ‘China Opportunity 2.0,’” Liu told a group of reporters here.

“For enterprises around the world, ‘China Opportunity 2.0’ means broader space for innovation, deeper industrial cooperation, and high-return investment opportunities,” he said.

“For global development, it means more accessible advanced technologies and more widely shared benefits,” Liu added. “All this shows that China’s emerging technologies and products bring the world not shocks or threats, but opportunities, partnerships, and shared progress.”

Liu described stability, innovation, dynamism and integration as the four key features of China’s economy in the first half of 2026. He said the economy grew by 5 per cent in the first quarter and maintained sound momentum during the second quarter.

China’s surveyed urban unemployment rate stood at 5.1 per cent in May, down 0.1 percentage points from the previous month. Its installed power generation capacity exceeded 4 billion kilowatts by the end of May, an increase of 11 per cent from a year earlier.

China’s artificial intelligence sector had also recorded strong growth, Liu said. Daily token usage reached several hundred trillion by the end of May, compared with 100 billion at the beginning of 2024.

High-tech manufacturing contributed nearly 40 per cent of China’s industrial growth from January through May, while equipment manufacturing accounted for almost 60 per cent. Investment in integrated circuit manufacturing increased by 11 per cent and investment in lithium-ion battery manufacturing rose by 24.9 per cent.

Liu said the country remained committed to opening its economy amid rising protectionism. China has extended zero-tariff policies to 63 countries and remained the world’s second-largest import market for 17 years, he said.

Imports increased by 20.5 per cent during the first five months of 2026, growing faster than exports. China-Africa trade rose by 18.2 per cent to 1.14 trillion yuan during the same period, crossing 1 trillion yuan for the first time.

China’s research and development spending grew by an average of 10 per cent annually between 2021 and 2025. Liu said China became the world’s second-largest investor in research and development and was home to 24 of the world’s 100 leading innovation clusters.

The term “China shock” is commonly used to describe the effect of China’s rise as a manufacturing and export power on industries and employment in other economies.

Concerns about a possible second China shock have centred on the country’s rapid expansion in electric vehicles, batteries, solar products and other advanced industries. The US and several other economies have responded with tariffs, investigations and measures intended to protect domestic producers.

IANS