'China Shock 2.0: Causes, Consequences, and Policy Responses' workshop in Rome

28 September 2026

Banca d'Italia and the European Central Bank (ECB) hosted the 'China Shock 2.0: Causes, Consequences, and Policy Responses' workshop, which brings together researchers from central banks, international institutions and academia to discuss the drivers and global implications of this new phase of China's integration into global trade.

Unlike the first China Shock, China is now increasingly emerging as a competitor in sophisticated, capital-intensive and strategic sectors. Recent Banca d'Italia research finds that around three quarters of China's export growth since late 2023 is attributable to domestic factors, against a backdrop of weak domestic demand, expanding manufacturing capacity and technological upgrading.

The workshop examined how government intervention in the economy, including through industrial policies, subsidies and trade measures, has contributed to the emergence of current global imbalances.

It also analysed the effects of trade tensions between the United States and China on the reallocation of global trade flows and on the transmission of price shocks through global supply chains.

In addition, participants explored possible EU policy responses to the escalation of tariffs between the United States and China and to the growing competitive pressures exerted by Chinese firms in international markets.

The event featured a keynote address by Professor Huang Yiping, Dean of the National School of Development at Peking University. His speech focused on the rebalancing of the Chinese economy, the contribution of China's domestic imbalances to global imbalances, the role of industrial policies and the country's ongoing economic reform process.

Annexes

  1. 24 September 2026
    Programme
    pdf 66 KB