Scmp iconScmpSep 26, 2026

How Chinese firms can avoid a Europe-style backlash in Southeast Asia

China's technology companies face a question that no pricing strategy can answer: what will their success do to their trading partners? European Commission President Ursula von der Leyen warns of a "second China shock", linking persistent trade imbalances to the erosion of Europe's industrial base.

How Chinese firms can avoid a Europe-style backlash in Southeast Asia

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China's technology companies face a question that no pricing strategy can answer: what will their success do to their trading partners?

European Commission President Ursula von der Leyen warns of a "second China shock", linking persistent trade imbalances to the erosion of Europe's industrial base.

Europe's dispute carries a broader warning: affordable products can coexist with deep anxiety over the loss of productive capability.

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China's technology companies face a question that no pricing strategy can answer: what will their success do to their trading partners? European Commission President Ursula von der Leyen warns of a "second China shock", linking persistent trade imbalances to the erosion of Europe's industrial base. Europe's dispute carries a broader warning: affordable products can coexist with deep anxiety over the loss of productive capability.

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In Europe, that question has become politically urgent.

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