The global economic discourse in the spring of 2026 is dominated by a single, apprehensive phrase: China Shock 2.0. From the halls of the European Commission to campaign trails in the United States, the narrative is consistent. It suggests that a second wave of Chinese industrial exports—focused on high-tech sectors such as electric vehicles, lithium-ion batteries and renewable energy infrastructure—is an existential threat to Western industry. However, a dispassionate view suggests this is not a crisis of competition, but a recalibration of global efficiency that the world cannot afford to reject.

At the heart of the friction lies a key question for policymakers: is the primary concern the loss of specific manufacturing jobs, or the broader economic stability of the middle class? For decades, Western policy has leaned towards shielding legacy industries through high trade barriers. Yet protecting a narrow industrial base at the expense of global price stability is proving to be a losing bargain. To understand the stakes, one must ask: what would the global economy look like without China’s green energy products?

China has now established itself as the indispensable provider of tools required for the energy transition. It controls roughly 70 per cent of the........

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