The world is waiting for the second wave of affordable goods from China

Twenty years ago, this devastated factories in the West, writes WSJ

At the end of the 1990s and the beginning of the 2000s, the global economy experienced a boom in the import of cheap Chinese goods. Economists believe that a “Chinese shock” is soon to be expected. This is reported by The Wall Street Journal, as reported by RBC. Beijing is now doubling exports to revive the slowing economic growth, factories are already producing more cars, machinery, and household electronics than necessary for the domestic market. Chinese companies, relying on government loans, oversaturate foreign markets with products that they couldn’t sell domestically. For the first time, this helped China keep inflation low, some economists expect the deflationary effect to be even stronger the second time around. However, today the United States, the European Union, and Japan do not want a repeat of the situation of the early 2000s when the boom in Chinese imports bankrupted many local industries, writes the American newspaper. The first “Chinese shock” led to the loss of over 2 million jobs in the US from 1999 to 2011. Today, Western countries have already allocated billions of dollars to support strategic industries and have either imposed or threatened to impose tariffs on imports from China. At the same time, according to some experts, Western concerns are now more fundamental: China is now competing in the production of high-tech products – cars, computer chips – and complex engineering.