The world is scarred from China shock 1.0. They're not about to let 2.0 happen so easily.

• China is pivoting to new growth drivers in solar cells, electric vehicles, and lithium-ion batteries.
• This could create "China shock 2.0" that impacts other economies around the world.
• The US, EU, and other nations are strategizing to counter China's emerging dominance in these industries.

China's economy is undergoing a painful transition as Beijing tries to steer it out of a post-COVID slump and a real-estate debt crisis.