The China in Africa Podcast Why China's Ability to Make a $6 Toaster is a Big Problem for the Global South
Nov 12, 2025
James Kynge, a veteran Financial Times journalist and author, discusses China's unprecedented manufacturing prowess and its implications for the Global South. He explores how China's ability to produce a $6 toaster illustrates a broader challenge for developing nations trying to climb the industrial ladder. Kynge highlights the unique advantages of industrial clusters like Shenzhen and the dual reality of China's economy, which combines immense wealth and low-wage labor. He warns that as countries compete with the 'China Price,' they face a daunting uphill battle.
AI Snips
Chapters
Books
Transcript
Episode notes
Flying Geese Model Has Broken Down
- China breaks the flying geese model by keeping both low-end and high-end manufacturing simultaneously.
- Automation and factory robots let China produce low-cost goods while climbing the tech ladder.
Robots Make Low-Cost Production Sustainable
- Massive deployment of factory robots keeps China's cost base low and productivity high.
- Robots work 24/7 and reduce the incentive to offshore low-end manufacturing.
China's Dual Reality: Billionaires And Low Wages
- China contains extreme wealth and very low-wage labor side by side across its vast economy.
- This continental-scale duality lets China serve both high-tech and ultra-low-cost markets simultaneously.
