China has dismissed concerns that its rapid expansion in advanced manufacturing and technology could trigger a new wave of global economic disruption, insisting that its industrial rise should be viewed as an opportunity for international businesses rather than a threat.
Responding to growing debate over what has been described as “China Shock 2.0”, Chinese Embassy spokesperson Liu Chang said China’s technological progress, industrial capacity and expanding market would create new avenues for innovation, investment and global cooperation.
China says industrial rise will expand global opportunities
Addressing reporters in Washington on Friday, Liu argued that China’s emerging technologies would make advanced innovations more widely available while opening fresh opportunities for businesses across the world.
“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 said.
“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. All this shows that China’s emerging technologies and products bring the world not shocks or threats, but opportunities, partnerships, and shared progress.”
Embassy cites growth, jobs and manufacturing data
Liu said China’s economy displayed four defining characteristics during the first half of 2026: stability, innovation, dynamism and integration.
According to him, China’s economy expanded 5 per cent during the first quarter and maintained momentum in the second quarter.
He also cited official figures showing the surveyed urban unemployment rate eased to 5.1 per cent in May, down 0.1 percentage points from the previous month.
Installed power generation capacity crossed 4 billion kilowatts by the end of May, up 11 per cent year-on-year.
Liu said China’s artificial intelligence sector had expanded rapidly. Daily token usage rose to several hundred trillion by the end of May from 100 billion at the beginning of 2024.
High-tech manufacturing contributed nearly 40 per cent of industrial growth between January and May. Equipment manufacturing accounted for almost 60 per cent during the same period.
Investment in integrated circuit manufacturing increased 11 per cent, while investment in lithium-ion battery manufacturing rose 24.9 per cent.
China highlights trade and research investment
Liu said China remained committed to opening its economy despite growing protectionist measures around the world.
He said China has extended zero-tariff treatment to 63 countries and has remained the world’s second-largest import market for 17 consecutive years.
Imports grew 20.5 per cent during the first five months of 2026, outpacing export growth, according to Liu.
China’s trade with Africa increased 18.2 per cent to 1.14 trillion yuan during the same period, crossing the one trillion yuan mark for the first time.
Liu also said China’s research and development spending recorded average annual growth of 10 per cent between 2021 and 2025. He added that the country is the world’s second-largest investor in research and development and hosts 24 of the world’s top 100 innovation clusters.
Why ‘China Shock 2.0’ is being debated
The term “China shock” is widely used to describe the impact China’s emergence as a manufacturing and export powerhouse had on industries and employment in several economies.
More recent concerns have focused on China’s rapid expansion in sectors such as electric vehicles, batteries, solar products and other advanced manufacturing industries.
The United States and several other economies have responded by imposing tariffs, launching investigations and introducing measures aimed at protecting domestic manufacturers.
(With IANS inputs)