Explainer: What’s behind “China Squeeze” fallacy?

Résumé détaillé

BEIJING, July 22 (Xinhua) — First came “China shock.” Then followed “Chinese overcapacity.” Now, some Western agitators have invented a new label: “China Squeeze.”A May 2026 paper…

BEIJING, July 22 (Xinhua) — First came “China shock.” Then followed “Chinese overcapacity.” Now, some Western agitators have invented a new label: “China Squeeze.”A May 2026 paper from the Peterson Institute for International Economics argues that China’s strength in labor-intensive manufacturing is narrowing the path to industrialization for poorer countries, highlighting competition from Chinese goods in the global and emerging markets and the foreign access to Chinese consumers.

A 2025 International Monetary Fund study found that China has made significant contributions to global economic growth and spillovers. Trade among developing economies has expanded fast, as South-South trade has surged tenfold over the past three decades and now accounts for more than one-third of global commerce, UN Trade and Development reported in 2025.GROWTH ENGINEThe second mistake is to treat Chinese commercial success as evidence of unfair trade.Germany built an advantage in cars, Japan in machinery, South Korea in memory chips and the United States in aerospace, pharmaceuticals and software.

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