Report

‘China shock 2.0’ and Europe’s industrial future

This report from UK think tank Chatham House examines how the EU and UK can respond to Chinese technological supremacy.

The global industrial landscape has shifted dramatically since the turn of the century. China’s rise as a manufacturing powerhouse has enabled the country to produce increasingly sophisticated goods at scale and at low cost. This phenomenon, known as the ‘China shock 2.0’, is placing growing pressure on European industry with far-reaching impacts.

This paper examines how China has come to dominate key industrial sectors and assesses the implications for Europe (including the UK). It explores how policymakers should balance the economic benefits of trade and investment with the need to protect strategic industries and national security interests.