An epidemic, once it tips, is terrifying. Look at Baltimore in the mid-1990s. Drug enforcement had collapsed. Black-market forces took root, and prostitution, gambling, and drugs ignited a syphilis outbreak.
Malcolm Gladwell, a renowned American journalist, saw a pattern: everything is contagious, with causes and effects. In 2000, he turned that insight into 'The Tipping Point.' It became an instant hit.
Europe's industrial powers are hooked on the 'China overcapacity' and 'China shock' story. They use it as a cover for discriminatory trade barriers. Now Beijing is hitting back with a mix of hard and soft tactics to steer the global conversation back to healthy growth.
Beijing is making its case. In a signed article in People's Daily, commentator Huan Yuping spells it out. The headline: 'Bidding Farewell to the Old Narrative of "China Shock" and Embracing the New Answer of "China Opportunity".' He writes: 'Over the past decade and more, China has been an important engine for world economic growth, contributing around 30% to global economic growth.'
The article coins a new term: 'China Opportunity 2.0'. It's 'an important engine for global innovation cooperation. China has always insisted on open innovation, forging an effective path of leading industrial innovation with technological innovation and promoting technological iteration through industrial upgrading.' But the author points to a deeper problem: the West is haunted by its own demons.
"Yet some countries remain trapped in the 'China threat' narrative. They pursue decoupling under the banner of 'de-risking' and protectionism under the guise of 'fair competition.' These moves don't fix their own structural problems. Instead, they disrupt global supply chains, fuel inflation, hurt businesses and consumers, and pose long-term systemic risks to the world economy."
Germany Pokes the Bear, China Hits Back
China doesn't have to play nice. There is no obligation to chase harmony without limits—especially when others cross the line. Bloomberg reports that the German government is digging into trade flows, supply chains, and company-level data to try to find out China's economic weak spots.
They want to see where China still depends on German and European technology, specialized components, and industrial patents. Their early assessment names Trumpf Group and Carl Zeiss.
This isn't just about trade friction. Think of it like a virus, as Gladwell does. Ideas, products, behaviors—they all spread the same way. A handful of carriers at first. Then, suddenly, a tipping point. The infection explodes overnight into a full-blown epidemic.
China is a responsible power. But it must stop a tipping point from turning into a prairie fire. If someone tries to be the detonator—smashing China's window to spark chaos—we have to act. Decisively.
China is already hitting back. Last month, it blacklisted two American companies vital to the U.S. effort to build a strong rare earth magnet supply chain. On Friday, Beijing went after European firms. The Ministry of Commerce banned further shipments of dual-use materials or products to 14 EU companies.
The New York Times explains: these items have potential military and civilian uses. The result? These companies will struggle to procure many critical minerals needed to make rare earth magnets and semiconductors—the building blocks of cars, offshore wind turbines, robots, drones, and other advanced manufacturing.
The Cure: Fix the Broken Window
Huan Yuping put it plainly: 'Truly competitive industrial advantages are forged in open competition, not incubated behind protectionist barriers.' Gladwell's insight is just as sharp. Humans are incredibly sensitive to their environment. Correct the tiniest detail. Fix that one broken window. You can reverse an epidemic. You can crush stubborn crime rates.
You know what I mean.
Deep Blue
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