China’s manufacturing rise is here to stay. The West must recalibrate

If the “China-shock" class="entity-link entity-event" data-entity-id="121504" data-entity-type="event">China Shock” of the early 2000s was about China catching up, then “China-shock-20" class="entity-link entity-event" data-entity-id="90614" data-entity-type="event">China-shock" class="entity-link entity-event" data-entity-id="121504" data-entity-type="event">China Shock 2.0” is about the country redefining the boundaries of what is economically possible across manufacturing sectors, according to Columbia University professor Adam Tooze.Amid complaints about the trade and industrial policies accelerating China’s rise in many sectors – including aviation, space, artificial intelligence (AI), telecoms, microprocessors, robotics, nuclear and fusion power, quantum computing, materials sciences, biotechnology, pharmaceuticals, solar power and batteries – Tooze offers a simple warning: “The rise of China is a long-term trend to which the West must adjust.”“The New Global Imbalances”, a report by the Centre for Economic Policy Research (CEPR), is similarly blunt: “Failure to acknowledge the structural nature of these changes, and excessive emphasis on protection, will undermine long-term growth for all.”