China’s Export Shock Could Break Global Growth, US May Face Cleanup

A Fortune feature quotes former U.S. Trade Representative Michael Froman warning that China’s export-led growth—boosted by subsidies and an undervalued currency—may be nearing a tipping point as global demand slows, risking a domino effect on world growth (IMF estimates around 3.1% for global GDP this year) with a record 2025 trade surplus. As protectionism rises, Beijing may not rescue the global economy, leaving the United States to manage the fallout; analysts also flag a new phase, “China Shock 2.0,” with China shifting toward more capital- and tech-intensive exports.