Competing with China in third markets

2026

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AI-generated summary

1) This policy brief analyzes how China's expanding export presence in advanced manufacturing sectors is impacting third markets and the competitiveness of advanced economies, highlighting that losses often exceed what China's growth alone would predict.
2) * Examines China's growing dominance in capital- and technology-intensive sectors and its displacement of advanced economies in third markets.
* Analyzes the differential impact of Chinese competition across countries, identifying those that have adapted more successfully and those that are particularly exposed.
* Discusses policy implications, cautioning against broad protectionism and emphasizing the need for forward-looking investment in innovation and addressing domestic weaknesses.
3) China, export competition, third markets, competitiveness, trade policy

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