China's Aggressive Push into Green Tech Stokes Fears of 'China Shock 2.0'

China is aggressively manufacturing and exporting solar panels, electric vehicles, and lithium-ion batteries. This could create a "China shock 2.0" that impacts other economies.

In China shock 1.0, China's rapid industrialization and exports disrupted manufacturing industries globally. Now China is targeting new strategic industries.

The US, EU, and others are taking steps to boost domestic manufacturing and supply chains to counter China's emerging dominance in these areas.

China is framing the Western response as an attempt to contain its growth and competitive advantage in green industries.

With China's slowing economy, trade tensions could escalate further this year around export price deflation and Chinese overcapacity in key sectors.