Xinhua
29 May 2026, 17:15 GMT+10
Today, China's advances in new energy serve as a similar "wake-up call" for Western firms. Rising to the challenges is the surest way forward.
by Ma Kangduo
The West has lately taken to labeling China's surging exports of electric vehicles (EVs), batteries and solar products as "China Shock 2.0," warning that they are devastating Western industries, endangering jobs and threatening strategic security. The claim sounds alarming, yet it simplifies a complex reality into a single proposition: that others' competence poses a threat. Such reasoning does not hold up under scrutiny.
A SHOCK OR A HISTORICAL NORM?
History is full of such "shocks." Britain's Industrial Revolution upended handicraft industries worldwide. America's assembly lines humbled Europe's aging factories. In the 1980s, Japanese cars and electronics left Detroit reeling. Today, China's leadership in new energy technologies has earned the title "Version 2.0."
The underlying reality is straightforward: industrial upgrading and shifts in competitive advantage are the natural rhythm of a dynamic global economy. Singling out one country's rise and portraying it as an exceptional threat is a deliberate distortion of historical norms.
DO CHINESE PRODUCTS REALLY HURT?
Thanks to China's large-scale manufacturing, global prices for solar modules, batteries and EVs have fallen sharply. Households can purchase EVs at more reasonable prices, while emerging economies can accelerate their green transitions. Western institutions, such as the International Energy Agency, estimate that without Chinese supply chains, the global energy transition would be far more expensive and slower.
WHO IS APPLYING DOUBLE STANDARDS?
Industrial subsidies are a common international practice. The United States allocated hundreds of billions of dollars through the Inflation Reduction Act to domestic green industries. Europe has also deployed extensive state-aid programs.
Yet, subsidies are not the core issue. What truly matters is a country's capability to spur innovation and enhance efficiency. Focusing obsessively on others' subsidies while overlooking one's own subsidies and domestic handicaps -- high energy costs and shortages of skilled workers -- will not restore competitiveness.
WHAT IS THE PATHWAY FORWARD?
When America faced Japan's competitive challenge decades ago, it responded with a quality revolution and took the lead in information technology. Today, China's advances in new energy serve as a similar "wake-up call" for Western firms. Rising to the challenges is the surest way forward.
Truly confident leaders focus not on tripping up competitors, but on enhancing their own performance. Blaming all problems on "China Shock" is ultimately self-defeating.
The global economy is not a zero-sum game. China needs to curb inefficient low-price competition, strengthen original innovation and expand domestic consumption. The West, meanwhile, should resort less to protectionism, pursue deeper reforms and sharpen its own competitiveness. Both sides have room for improvement. Working together, they can build a bigger "cake" for everyone to share.
History does not stop for loud complaints. The strong strive to deliver while the weak remain stuck in grievances.
Editor's note: The author is a researcher and commentator specializing in international affairs, with a particular focus on China-Latin America relations and China-West dynamics, committed to providing balanced and insightful analysis on global issues and exploring pathways for constructive cross-cultural cooperation.
The views expressed in this article are those of the author and do not necessarily reflect those of Xinhua News Agency.
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