If the “China shock” of the early 2000s was about China catching up, then “China shock 2.0” is about the country redefining the boundaries of what is economically possible across manufacturing sectors, according to Columbia University professor Adam Tooze.

Amid complaints about the trade and industrial policies accelerating China’s rise in many sectors – including aviation, space, artificial intelligence (AI), telecoms, microprocessors, robotics, nuclear and fusion power, quantum computing,...