China is breaking the rules of development. Typically, as countries progress up the value chain, they transition from agriculture to light industry, then to heavy industry, and ultimately to high-technology and services. And as they move up the value chain, this creates opportunities for less-developed countries to advance.

But China's not doing that. Chinese manufacturers are holding on to their immense productive capacity, enabling them to produce both low-tech sneakers and high-tech semiconductors at a scale and cost that are unrivaled.

Now, as developing countries around the world seek to move up the value chain, they will have to compete head-on against the dreaded "China Price."

James Kynge, who covered China for nearly 30 years at the Financial Times, delved into this challenge in a fascinating audiobook that came out earlier this year, "Global Tech Wars: China's Race to Dominate." James joins Eric from London to explain how China's ability to produce a $6 toaster exemplifies the country's enormous manufacturing advantage that will be very difficult, if not impossible, for other countries to match.

CHAPTERS:

• Introduction – The $6 toaster and the global value chain crisis • The Flying Geese Model – How automation broke development's old path • China's Dual Reality – A continent-sized economy of billionaires and low-wage labor • Industrial Clusters – The unbeatable advantage of Shenzhen and the Pearl River Delta • The Global South's Dilemma – Competing against the "China price" • Automation and Inequality – Why manufacturing isn't moving offshore • The $1 Trillion Surplus – Trade backlash and global tensions • Searching for Solutions – Industrial policy and self-strengthening in the Global South • Winners and Losers – Cheap exports, consumer gains, and producer pain • Political Risk – Xi Jinping's lesson from Western deindustrialization • The Humanoid Robot Moment – From $6 toasters to $6,000 robots • China's Auto Revolution – BYD and the new wave of affordable EVs • The Double-Edged Future – Opportunity and disruption in China's rise

SHOW NOTES:

Financial Times: Global Tech Wars: China's Race to Dominate by James Kynge
Financial Times: China's plan to reshape world trade on its own terms by James Kynge and Keith Fray

JOIN THE DISCUSSION: X: @ChinaGSProject | @eric_olander | @christiangeraud

Facebook: www.facebook.com/ChinaAfricaProject YouTube: www.youtube.com/@ChinaGlobalSouth

Now on Bluesky! Follow CGSP at @chinagsproject.bsky.social

FOLLOW CGSP IN FRENCH & SPANISH:

French: www.projetafriquechine.com | @AfrikChine
Spanish: www.chinalasamericas.com | @ChinaAmericas

JOIN US ON PATREON! Become a CGSP Patreon member and get all sorts of cool stuff, including our Week in Review report, an invitation to join monthly Zoom calls with Eric & Cobus, and even an awesome new CGSP Podcast mug! www.patreon.com/chinaglobalsouth

Market View: Singapore's growth exceeds expectations, Biden's strategy to curb inflation, SIAS clarifies Keppel and Cuscaden's bids for SPH