In recent years, the “China Import Shock” has become a prominent topic in Western academic discourse. Some Scholars argued that China’s long-term export growth to the U.S. following its WTO accession has had a profound negative impact on local labor markets and resulted in significant employment losses, this concept has sparked a wave of subsequent research. Scholars have since employed various methods, variables, and dimensions to analyze the labor market effects of trade shocks across different countries and contexts. The re-evaluation of the costs and benefits of trade with China has sparked widespread debate in Western academia, with diverging views on policy approaches like trade liberalization and protectionism. However, existing studies lack a systematic summary and organization of the labor market effects of such trade shocks. This paper seeks to fill this gap by systematically reviewing the classic literature on trade shocks, focusing on key aspects such as identification methods, primary impacts, effect assessments, and adaptation strategies. By doing so, we aim to summarize the main findings on the labor market effects of trade shocks and the prevailing viewpoints in the field. The objective of this paper is to critically review recent developments in research on the labor market effects of trade shocks, highlighting both the gaps in the current literature and potential future research directions. This review aims to provide a solid foundation for further studies and offer valuable insights for better understanding the impacts of trade shocks on local labor markets.