A significant hike in US tariffs, including a 100% duty on electric vehicles (EVs) from China, along with steep tariffs on solar cells, steel, aluminum, and minerals, marks a response to the rising influx of Chinese goods into global markets, dubbed China Shock 2.0.
This renewed wave is driven by China’s bid to dominate high-tech sectors amid a domestic economic slowdown
China’s accession to the WTO in the early 2000s, with expectations of political and economic reforms, led to the “China Shock”—the flooding of global markets with cheap Chinese goods.
This disrupted global manufacturing, including in India, where imports from China surged significantly, hitting a record $100 billion in 2023-24 despite trade restrictions.
Growing Global Trade Tensions
The increasing inflow of Chinese exports, coupled with heightened trade tensions and retaliatory measures like tariff hikes and anti-dumping probes, underscores the global economic disruptions triggered by China’s export strategy amid its domestic slowdown.
India’s response to the situation reflects broader concerns about economic dependence on China in critical sectors like steel, solar, and electronics.
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