Apollo Global Management chief economist Torsten Slok warns that « China Shock 2.0 is here, » with Chinese exports rising 24% in July, fueled by a surge in high-tech goods. Unlike the first China shock that targeted low-margin goods, this wave focuses on high-value industries including electric vehicles, semiconductors and advanced technology, with high-tech exports up nearly 41% year-to-date and semiconductor exports doubling. BYD has overtaken Tesla as the world’s largest seller of fully electric vehicles in 2025, delivering 2.26 million battery-electric cars versus Tesla’s 1.6 million. American companies remain exposed to this competition abroad despite 100% tariffs on Chinese vehicles in the U.S. market. Experts warn that China’s growing dominance in foundational semiconductors, industrial robots and AI data center components could significantly pressure Western manufacturers over the next two years.
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