Apollo economist: China's high-tech export surge poses new threat to U.S. firms

Apollo Global Management's chief economist Torsten Slok argues that China's export boom has shifted from low-cost goods to advanced technology like EVs and semiconductors, creating a 'China Shock 2.0' that threatens American companies. Chinese high-tech exports surged nearly 41% in the first seven months of the year, with semiconductor exports doubling. Unlike the earlier shock, tariffs may not protect U.S. firms because China now controls cutting-edge production itself.

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The shift is marked by China's growing self-sufficiency in components, a departure from its earlier assembly-line role. Federal Reserve economists note that China now imports fewer manufactured inputs as its exports grow, altering global supply chains. High-tech exports rose 41% in the first seven months, with semiconductor shipments doubling.

The automotive sector illustrates the challenge. BYD sold 2.26 million battery-electric cars in 2025, outpacing Tesla's 1.6