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Germany thrived in the first China Shock. But the next one could prove catastrophic.
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TPR: The Public's Radio
Economists are calling this threat “the second China Shock.” The first China Shock happened in the early 2000s.
Why the second China Shock is differentMany economists are now warning the world about the onslaught of “a second China Shock.” Tordoir says the one crucial driver of this shock is that, essentially, China has been trying to export its way out of a domestic slump ever since its real-estate bubble burst around 2021.
A crucial question regarding the second China Shock is how much of China’s competitive edge is the result of unfair competition?
This gets to why the second China Shock in Germany could prove much more devastating than the first one proved to be in the United States.
In addition to the China Shock, there’s the retreat of the United States behind a tariff wall.