The China Shock: The Big Event in Trade

The China shock is the big event in trade in the last couple of decades, are being pushed down. And as you would expect the countries that are pushed up are the ones where China is competing in their least complex goods so we find countries such as Italy or European nations or South Korea. While countries that are pushing down are African countries, Bangladesh, etc. The reason why China held back Africa much more than South Asia is kind of threefold. It's this push force where they're pushing them out of the more complex in the pull force where they’re purchasing a lot of their least simple goods and pulling labor into those sectors.