The Bank of Italy and European Central Bank hosted a workshop examining the drivers and global effects of a new phase in China’s integration into global trade. Discussions focused on China’s growing competition in sophisticated, capital intensive and strategic sectors, the domestic forces behind its export expansion and possible EU responses to rising tariff and competitive pressures. Bank of Italy research attributes around three quarters of China’s export growth since late 2023 to domestic factors, amid weak domestic demand, expanding manufacturing capacity and technological upgrading. Participants assessed how industrial policies, subsidies and trade measures have contributed to global imbalances, as well as how U.S.-China trade tensions are redirecting trade flows and transmitting price shocks through global supply chains. Huang Yiping, dean of Peking University’s National School of Development, addressed China’s economic rebalancing, domestic imbalances, industrial policy and continuing reforms.
Source: 2026-09-28Bank of Italy
Bank of Italy and European Central Bank examine China Shock 2.0 and potential EU policy responses
The Bank of Italy and European Central Bank examined the causes and global effects of China’s growing competition in sophisticated and strategic sectors. Bank of Italy research attributes around three quarters of China’s export growth since late 2023 to domestic factors, while discussions covered global trade shifts, supply chain price effects and potential EU policy responses.