China's progress a catalyst for new start, experts say

Former British lawmaker George Galloway recalled seeing metal so thin during a visit to a Chinese steel plant that it could be torn by hand.

For him, it illustrated a transformation deserving closer attention: China is no longer simply supplying the world with T-shirts and toys, but increasingly with advanced technology.

Galloway said China's progress offers lessons for other economies. What some portray as a danger is "the threat of a good example", he said in an interview during his recent visit to Beijing.

China's industrial advances are giving other economies access to more affordable technology, new markets and opportunities to develop their own industries, political figures and scholars told China Daily.

The term "China shock" is associated with research on job losses and slow adjustment in US communities exposed to rising imports from China. The label "China shock 2.0" is now used in debates over competition from Chinese exports in industries such as electric vehicles and solar energy.

Several of the figures interviewed acknowledged that established industries outside China faced adjustment pressures. But they argued that viewing China's advances primarily as a threat risked overlooking the products, expertise and partnerships that could help other economies become more competitive.

R&D edge

China hosts 25 of the world's top 100 innovation clusters, more than any other economy, according to the World Intellectual Property Organization's 2026 rankings. Value added in high-tech manufacturing rose 13.3 percent year-on-year in the first half of 2026, according to the National Bureau of Statistics.

Speaking at a dialogue in Beijing in October, former New Zealand prime minister Jenny Shipley linked China's resilience to sustained investment, its strategic focus and the ability to adjust as circumstances changed.

China's development had involved pauses and changes of direction, she said, but long-term planning and disciplined implementation had helped it maintain momentum.

She singled out research and development, saying China had directed funding toward priority areas and encouraged collaborative innovation.

China's R&D spending rose 8.2 percent to about 3.93 trillion yuan ($590 billion) in 2025, equivalent to 2.8 percent of GDP, according to figures released by the National Bureau of Statistics on Oct 16.

Shipley said earlier infrastructure investment had also helped prepare the ground for artificial intelligence platforms and applications, creating the foundations for new economic activity.

The speed of China's transformation into a high-tech economy — within roughly a generation and a half — had surprised some Europeans, said Slawomir Majman, deputy director of the Institute of Security and International Development in Poland.

"It's a cognitive shock," he told China Daily.

Some European industries had assumed their technological lead would endure and invested too little in research and development, he said. They had failed to prepare adequately for technological change.

China, by contrast, had anticipated such changes and leapfrogged certain stages of development, Majman said, citing payment systems as an example. He described the improvement in the quality of Chinese exports as a "revolution", increasingly recognized by European consumers and businesses.

Perceptions of German and Japanese products have also changed as their quality improved, he noted. Judgments about Chinese manufacturing needed to catch up with what its companies are producing.

Benefits of competition

As Chinese companies become more competitive, other countries face decisions about how to respond. Some experts said investing in innovation, learning from successful technologies and keeping trade open could help those countries strengthen their industries and gain from China's progress.

Former British lawmaker Mark Logan said a "shock" could be understood as "something that pushes you to try and be more innovative and try and do more".

Countries should study what others had achieved and use those lessons to improve their own economies, he told China Daily. Britain's own industrial history, he said, should encourage confidence in competition and a willingness to learn.

"China being successful, I believe, means that the whole world can be successful," he said.

John Ross, a British economist and former director of economic and business policy for the mayor of London, said European countries should examine their own economic decisions rather than attribute their difficulties to China.

"Economic problems in Europe are created in Europe," he told China Daily, pointing to higher costs following the loss of access to cheap Russian gas and the economic costs of conflict.

Continued trade demand with China, including for its renewable-energy products, showed the benefits countries and businesses expected from those ties, he said.

Consumers could also judge products through their own experience. Ross described automaker BYD as "the best ambassador for China", saying its customers could assess the cars for themselves. "They know that's a good car," he said.

Trade allows countries to draw on one another's strengths, Ross added.

The falling cost of solar technology illustrates the gains available to businesses investing in clean energy. In an analysis published on Aug 3, the International Energy Agency said global solar-module prices fell by about 50 percent between 2023 and 2025, lowering equipment costs for solar projects.

China is a major supplier: its solar photovoltaic output increased 13-fold over the past decade, with export markets absorbing around 40 percent of that increase, the agency said.

Galloway acknowledged that China's high-end exports challenged established Western industries. Recalling Britain's former industrial dominance, he questioned why it should be considered shocking that other countries could make products better and cheaper.

He sees a contradiction between professed support for markets and opposition to the outcome when consumers choose Chinese goods. Those who declare "the customer is king" change their position when another country's products succeed. "Then they suddenly become protectionists," he said.

Shipley also questioned tariff protection. Drawing on her experience in government, she said such measures can disrupt markets and supply chains and did not work over the medium term.