'China Shock 3.0'? New wave of 'Chinese dividends' on the way

China's strong momentum in scientific and technological innovation, and in advanced manufacturing, is generating a steady stream of innovation dividends and new opportunities for global cooperation, the Global Times reported on Monday, citing data from the National Bureau of Statistics.

From January to July, China's industrial robot output rose 28.5 percent year-on-year, while output of 3D-printing equipment and lithium-ion batteries increased 52.3 percent and 40.2 percent respectively, official data showed.

Meanwhile, mechanical and electrical products accounted for 63.8 percent of China's total goods exports in the first seven months of the year, and knowledge-intensive services made up 53.5 percent of the country's total service exports in the first half.

Recently, some European media outlets have been peddling the so-called "China Shock 3.0" narrative, warning that Chinese smart products could deliver a "third shock" to the world. Yet the latest figures point to the growing global demand for China's advanced production capacity, challenging the basis of that narrative.

The two previous so-called "shocks" corresponded respectively to China's accession to the World Trade Organization and its integration into global industrial chains, and to the overseas expansion of the "new three" products — electric vehicles, lithium-ion batteries and photovoltaic products — into green markets.

Each leap in China's industrial upgrading has been portrayed by some in the West as squeezing industries in other countries. But the facts tell a different story, the newspaper said.

China's WTO accession brought additional production capacity and smoother trade channels to global markets. Exports of new-energy products have helped reduce the cost of green development for economies worldwide, while injecting fresh momentum into global economic and trade growth.

In a sense, as some Western voices stoke fears of a "China Shock 3.0", a new wave of "Chinese dividends" is already emerging for the world, the newspaper said.

China's exports of consumer-grade 3D-printing equipment, for example, have surged. With cost-effective and highly adaptable products, Chinese manufacturers have lowered R&D and production barriers for small and medium-sized enterprises and maker communities around the world.

The lithium-ion battery industry not only supports the global energy transition, but also provides stable and reliable power solutions for AI data centers, intelligent equipment and energy-storage systems, helping meet the rapidly growing demand of the global digital intelligent industry.

Meanwhile, China's industrial robot production and exports continue to expand. With products sold in more than 100 countries and regions, Chinese manufacturers are helping traditional industries worldwide reduce costs, improve efficiency and accelerate intelligent transformation.

The so-called "China Shock" theory essentially boils down to how global productive forces can be allocated more fairly and efficiently, the newspaper said. "Those seeking exclusive access to economic dividends may perceive a 'shock', while those embracing more inclusive access to technology may see opportunities."