China rejects “China Shock 2.0” concerns, highlighting industrial growth, AI innovation, high-tech manufacturing and global investment opportunities. Chinese officials say technological advancement, expanding trade and economic openness will strengthen international cooperation, market access and shared global development despite rising protectionist measures.
China has firmly rejected growing concerns over a possible “China Shock 2.0,” arguing that its rapid advances in technology, manufacturing and industrial production should be viewed as opportunities for global growth rather than a threat to international markets. Chinese officials said the country’s expanding industrial capabilities would create broader opportunities for innovation, investment and economic cooperation across the world.
Speaking to reporters in Washington on Friday, Liu Chang, spokesperson for the Chinese Embassy, said China’s technological progress and economic transformation would contribute positively to global development by making advanced technologies more widely available and encouraging stronger international partnerships.
Liu said that while some observers have expressed concerns over China’s increasing competitiveness in advanced industries by referring to a so-called “China Shock 2.0,” Beijing believes the global economy stands to benefit from China’s continued development.
According to Liu, what some describe as “China Shock 2.0” should instead be understood as “China Opportunity 2.0.” He said China’s expanding industrial base offers enterprises around the world greater opportunities for innovation, deeper industrial cooperation and attractive investment prospects.
He added that China’s technological progress would help improve access to advanced technologies, allowing countries and businesses to benefit from shared innovation and sustainable economic development. Rather than creating disruptions, China’s emerging industries are expected to generate new partnerships and broader economic opportunities, Liu said.
Highlighting China’s recent economic performance, Liu stated that the country’s economy recorded a 5 per cent growth rate during the first quarter of 2026 and maintained steady momentum throughout the second quarter. He described the Chinese economy as being characterized by stability, innovation, dynamism and greater integration with the global economy during the first half of the year.
China also reported improvements in key economic indicators. The country’s surveyed urban unemployment rate declined to 5.1 per cent in May, down slightly from the previous month, while total installed power generation capacity exceeded 4 billion kilowatts by the end of May, representing an 11 per cent increase compared to the previous year.
Liu also pointed to significant progress in China’s artificial intelligence sector. Daily AI token usage reached several hundred trillion by the end of May 2026, marking a dramatic increase from approximately 100 billion daily tokens at the beginning of 2024. The rapid expansion reflects China’s continued investment in digital technologies and AI development.
High-tech manufacturing remained a major contributor to China’s industrial growth. Between January and May, high-tech manufacturing accounted for nearly 40 per cent of overall industrial expansion, while equipment manufacturing contributed almost 60 per cent. Investment in integrated circuit manufacturing increased by 11 per cent during the period, while investment in lithium-ion battery production rose by nearly 25 per cent.
Despite rising protectionist policies adopted by several countries, Liu reiterated China’s commitment to maintaining an open economy. He noted that China has extended zero-tariff treatment to 63 countries and has remained the world’s second-largest import market for the past 17 years.
Trade figures released by Chinese authorities also reflected continued expansion. Imports during the first five months of 2026 increased by 20.5 per cent, growing faster than exports during the same period. China-Africa trade reached 1.14 trillion yuan, rising 18.2 per cent year-on-year and surpassing the one trillion yuan milestone for the first time.
China has also continued to strengthen its research and development capabilities. Liu said national R&D spending grew at an average annual rate of 10 per cent between 2021 and 2025, making China the world’s second-largest investor in research and development. The country is now home to 24 of the world’s top 100 innovation clusters, reflecting its growing position in global science and technology.
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The term “China Shock” originally referred to the impact of China’s rapid rise as a manufacturing and export powerhouse on industries and employment in several advanced economies. More recent concerns surrounding a possible second “China Shock” have focused on China’s growing dominance in electric vehicles, batteries, solar technology and other advanced manufacturing sectors. In response, the United States and several other economies have introduced tariffs, trade investigations and other measures aimed at protecting domestic industries. However, Chinese officials maintain that the country’s industrial and technological expansion will continue to support global economic growth through greater cooperation, investment and shared development opportunities.
