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China‘s mercantilist squeeze on developing countries
Concern over China’s trade surplus is again resurging in the United States and Europe, but less attention has been paid to what China’s surplus means for low- and middle-income countries. Despite becoming a richer and higher-tech economy, China continues to occupy a large share of global low-skill-intensive export markets such as apparel and footwear, precisely where low- and middle-income countries compete most directly. The authors document what they call a ＂China Squeeze,＂ which is limiting the industrialization opportunities traditionally used by these countries to grow their economies and create jobs.
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