The China Shock 2.0

Ezra Klein talks with Brad Setser, a Council on Foreign Relations senior fellow and former trade official, about what Setser calls 'China Shock 2.0.' Where the first China Shock saw China dominate low-end manufacturing, this new wave involves China outcompeting advanced manufacturing — electric vehicles, batteries, solar panels — and is now moving into frontier AI software. Setser argues this poses a serious economic and political threat to countries around the world, and the conversation explores what those countries should do in response.