China Shock 2.0 Is Here | The Daily Spark | August 21, 2026

> Apollo: China Shock 1.0 flooded global markets with cheap consumer goods in the 2000s, but China Shock 2.0 represents a sharper acceleration in manufacturing exports where the country now dominates advanced sectors like EVs and semiconductors through industrial policy and overcapacity, see the first chart below. > Brad Setser warns that, unlike the first shock, there's nowhere left to move production when China…