China charts a new economic future | Hinrich Foundation

The global challenges posed by China’s economic expansion and strategies aren't often well understood, especially as a "China Shock 2.0" takes hold, driven by a surge in the country’s exports of electric vehicles, solar panels, and batteries. Chen Gang from the East Asian Institute and Yuan Mei from Singapore Management University delve into China's economic growth and its future prospects. Since joining the WTO, China's export growth has been phenomenal, driven by demand from the US, which consequently contributed to a decline in America’s manufacturing sector. This trend has significantly shaped recent US trade policy. In an effort to reverse the slump in manufacturing jobs, Donald Trump imposed tariffs on Chinese imports. But there is no evidence that these measures have been effective. In fact, many Chinese companies have moved production to other countries to circumvent these tariffs, highlighted Yuan Mei. As China relocates some of the supply chains, it is doubling down on other parts of the value chain, such as high-end manufacturing and research and development. This strategic shift is exemplified in the country’s focus on electric vehicles, solar panels, and batteries, which are poised to drive its next phase of export-led growth, said Chen Gang. --- Follow us on social media: • Twitter: twitter.com/hinrichfdn • Facebook: www.facebook.com/hinrichfoundation/ • LinkedIn: www.linkedin.com/company/hinrich-foundation-ltd/ • Instagram: www.instagram.com/hinrich.foundation/