Lakhs to get unemployed! China’s ‘Shock 2.0’ makes the whole world worried…

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• Lakhs to get unemployed! China’s ‘Shock 2.0’ makes the whole world worried…

U.S. has taken major action against Chinese products over the fear of China Shock 2.0 which can make lakhs of people unemployed.

Globalization has brought both advantages and challenges. Over the past 25 years, it has also led to significant job losses. While countries like China have taken its benefits, many others have faced setbacks. With rising protectionist policies, India and Western countries are now taking measures against Chinese imports.

U.S. Big Action Against China

In a move to curb the influx of Chinese products, particularly in the clean energy and high-tech sectors, the U.S. has imposed heavy tariffs on imports from China. Amid increasing Chinese imports, countries like India and those in the West are adopting protective measures. Indian Foreign Minister S. Jaishankar recently highlighted that globalization has led to job losses and dissatisfaction with living standards in many societies over the last 25 years. He remarked that globalization has not only expanded trade but has also been weaponized for strategic purposes.

China Shock 2.0

The first shock occurred in 2001 when China’s entry into the WTO led to a surge of inexpensive Chinese goods in global markets. This resulted in widespread job losses across several industries worldwide.

Experts have dubbed this new phenomenon “China Shock 2.0.” This could result in job losses in several countries, including India. The first “China Shock” occurred in 2001, after China joined the World Trade Organization (WTO). At that time, cheap Chinese goods flooded global markets, leading to widespread job losses worldwide.

India’s Tough Stance Against Chinese Products

Jaishankar’s comments come at a time when a new wave of Chinese products, particularly in clean energy and high-tech sectors, threatens job markets in various regions, including India. In response, the U.S. has imposed heavy tariffs on these Chinese imports to counter the potential impact.

India has also intensified its anti-subsidy measures against Chinese imports. In 2024 alone, India has implemented more than 30 anti-dumping measures against Chinese goods which was more than any other country. The targeted products include industrial items such as plastic processing machines, vacuum-insulated flasks, welded stainless steel pipes and tubes, soft ferrite cores, and industrial laser machines.

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