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China's manufacturing rise is structural, West must adjust: Tooze and CEPR

economy-finance · 2026-05-01

Adam Tooze and the Centre for Economic Policy Research (CEPR) argue that China's manufacturing ascent across sectors like AI, aerospace, and biotech is a structural, long-term trend. In a report titled "The New Global Imbalances," the CEPR warns that protectionism will undermine long-term growth. Tooze advises the West to recalibrate rather than resist. The analysis counters the "China-shock" narrative, dismissing claims of unfair competition as the "pesky foreigner" prejudice.

Key facts

  • China's manufacturing rise spans aviation, space, AI, telecoms, microprocessors, robotics, nuclear and fusion power, quantum computing, materials sciences, biotechnology, pharmaceuticals, solar power, and batteries.
  • Adam Tooze warns the rise of China is a long-term trend to which the West must adjust.
  • The CEPR report 'The New Global Imbalances' states failure to acknowledge structural changes will undermine long-term growth.
  • Protectionism is criticized as weakening long-term growth.
  • The China-shock narrative has persisted for almost three decades.
  • Tooze and CEPR ask: Why care? Why now? What is to be done?
  • Anxieties about China are built on weak foundations, including the 'pesky foreigner' prejudice.
  • The 'pesky foreigner' prejudice claims foreign companies are unscrupulous and collude with governments.

Entities

Institutions

  • Centre for Economic Policy Research (CEPR)

Locations

  • China

Sources