China's Manufacturing Dominance Criticized for 'Squeezing' Global South Nations

(CNA, Taipei, 13th) - Recently, several international media outlets have introduced the concept of 'China's squeeze,' suggesting that China's manufacturing capabilities are not only affecting Western nations but also encroaching on the industrialization development space of Global South countries. On the 10th, Mao Ning, spokesperson for China's Ministry of Foreign Affairs, denied this claim, stating that 'China's squeeze' does not reflect reality and that Global South countries would not agree with such a characterization.

This exchange took place during the Ministry of Foreign Affairs' regular press briefing on the 10th. The question was posed by a reporter from Shanghai's The Paper, and according to Guancha.cn, the term 'China's squeeze' was first clearly articulated in a May 11, 2026 report titled 'China's Mercantilist Squeeze' by the U.S. think tank Peterson Institute for International Economics (PIIE). The concept was further elaborated in an article published on June 18, 2026, in the American journal Foreign Affairs.

The PIIE report claims that historically, low-income countries have relied on developing low-tech, labor-intensive manufacturing to kickstart industrialization and economic growth. However, this traditional pathway has been disrupted by China's presence.

The report notes that although China's economy is transitioning toward high-tech and high-value-added industries, it still maintains a dominant share of global exports in traditional low-skill manufacturing sectors such as apparel, footwear, headwear, and electronics assembly. This, in turn, has squeezed the development space for developing countries.

As a result, this trade phenomenon has compressed the industrialization opportunities essential for poorer 'Global South' nations, causing them to miss out on hundreds of billions of dollars in potential export revenue. For instance, in just four low-end manufacturing sectors—textiles, clothing, leather, and footwear—lower- and middle-income countries have lost approximately $110 billion in value-added. When expanded to all low-end manufactured goods, the total loss reaches about $365 billion.

The Foreign Affairs article opens with the assertion that 'China is pulling up the ladder behind it,' with the subtitle asking, 'How China’s export strategy keeps poor countries poor.' The article argues that the reason many developing countries remain impoverished is not Western colonialism, but rather China itself.

In response, Mao Ning, spokesperson for China's Ministry of Foreign Affairs, stated at the regular press briefing on the 10th that as a member of the Global South family, China has consistently and unreservedly shared its experience to help Global South nations develop.

She said that through effective infrastructure, investment, and technological cooperation, China helps Southern nations enhance their self-reliant development capabilities. By opening its markets, China supports Southern nations in expanding exports of quality products to China, allowing trade revenues to feed back into industrial development. Through inclusive and accessible green products, China helps Southern nations improve resource allocation and accelerate industrial transformation and upgrading.

Mao emphasized that on the journey toward modernization, China and Global South nations remain partners. 'The greatness of a major country lies in benefiting the world,' she said. 'China will continue to provide opportunities for the world through its own development, achieving shared prosperity.' (Editors: Zhu Jianling / Lu Jiarong) 1150713