China’s emergence as a great economic power has induced an epochal shift in world trade. Beginning in the early 2000s, the entry into the
WTO and the resulting sudden increase in exports put a strain on the U.S. and European manufacturing sectors, with negative effects on
employment. That, in a nutshell, was the “China Shock.” Twenty years later, what is the situation? Have the effects of the shock faded or do they persist?