Hankyung News Agency: April 15 report, China is triggering a "China Shock 2.0" with a model of "high quality, astonishingly low prices, and quantity-driven expansion," dominating global markets in high-tech sectors such as electric vehicles, robotics, and batteries, pushing Western manufacturing into crisis. A typical example is the leakage current detection sensor from Shanghai-based MSET Company, whose sales surged from around 20,000 units in 2019 to an estimated 10 million units, while similar European products are priced above €200 (approximately RMB 1,550), MSET entered the market at about €100 (roughly RMB 775), with some channels even as low as RMB 10 per unit; China's Cherry Auto SUV “J-Ku 7” ranked first in UK sales last month, with a starting price as low as £29,000 (approximately RMB 261,000). Last year, China’s merchandise trade surplus reached $1 trillion (approximately RMB 7.25 trillion), and exports grew by about 15% in the first quarter this year. The core logic lies in domestic overproduction and intense price wars driven by internal competition—enterprises are forced to repeatedly cut costs and replace labor with robots, ultimately having no choice but to seek outlets abroad. MSET’s CEO candidly admitted, “The pressure is nearly uncontrollable.” According to OECD analysis, Chinese enterprises receive subsidies 3 to 9 times higher than their counterparts in developed countries, primarily through low-interest loans provided by state-owned banks; the International Monetary Fund estimates that the renminbi’s real effective exchange rate is undervalued by approximately 16%, further amplifying export advantages. French President Emmanuel Macron emphasized that the wave of high-quality Chinese products directly determines the survival of Europe’s manufacturing sector. Zetmayer, Director of the Brussels-based Bruegel Institute, warned: “We must stop or at least slow down this Chinese bulldozer,” yet also acknowledged that China’s long-term dominance in global manufacturing is a reality, requiring strategies that avoid direct confrontation.

Original source: toutiao.com/article/1862575658051584/

Disclaimer: This article represents the personal views of the author