If stock prices are your go‑to economic barometer then you could be forgiven for ignoring the original “China Shock” a quarter‑century ago. Manufacturing job losses in machinery, textiles, electronics and furniture slammed parts of the U.S. after China joined the World Trade Organization in 2001. But what was awful for those communities didn’t really affect the market.

There’s even a strong case that China’s industrial rise was a major tailwind for stocks overall. Globalization in general boosted corporate profit margins, whether it was call centers in Manila, car factories in Ciudad Juárez or iPhone assembly in Shenzhen. Its indirect effect probably was greater: It kept U.S. inflation in check during the era of ultralow interest rates, helping Americans, and Washington, borrow and spend.

But “China Shock 2.0,” which moved from basic goods made with cheap labor to cutting‑edge products, is different. If you still weren’t paying attention, you probably are now given the recent ripples it’s caused in the AI trade.

The shift underscores how shifts in global supply chains can ripple through markets, reminding investors that what matters is not just jobs, but the broader economic architecture.