Opinion
China Is Not Pulling Up the Industrialization Ladder
A recent Peterson Institute for International Economics paper advances what it calls the “China Squeeze.” It argues that China, despite moving into more advanced industries, has not withdrawn from labor-intensive sectors. By continuing to compete in these markets, the paper claims, China is blocking poorer countries from following the traditional path to industrialization. It accuse China for climbing the development ladder and then pulling it up.
This argument misreads how industrial development and production relocation actually work. It treats China as a single, economically homogeneous country and overlooks the infrastructure, supply chains and market access that industrialization requires.
It assume that as Chinese wages rise, China should vacate traditional industries and make room for poorer economies. If it does not, it is supposedly trying to “retain comparative advantage in everything.”
But China is not composed only of Shanghai, Shenzhen and other prosperous coastal cities. It also has a vast interior, a large population and enormous regional differences in wages, land costs, industrial structures and stages of development. When manufacturing moves from Guangdong, Zhejiang or Jiangsu to Anhui, Jiangxi, Hubei or Sichuan, the economic logic is not fundamentally different from a factory moving from China to Vietnam or Indonesia. Both represent the relocation of production in response to changing costs and capabilities.
China’s internal development gap means that the entire country cannot be expected to exit an industry simultaneously. Ignoring domestic industrial relocation while focusing exclusively on production crossing national borders makes China’s continued presence in traditional manufacturing appear far more anomalous than it is.
The “China Squeeze” argument also understates the scale of China’s outward industrial relocation. A growing number of developing economies import Chinese machinery and components, process or assemble them locally, and then export finished goods to the United States, Europe and other markets. Like what McKinsey describes in its report, China’s changing role as a shift from the “factory of the world” to a “factory to the factories.” In 2025, China’s exports of consumer goods declined by about 2 percent. Its exports of intermediate goods, however, rose by 9 percent, while capital-goods exports increased by 5 percent. The fastest-growing categories included semiconductors, memory chips, lithium-ion batteries, smartphone components and industrial machinery.
In other words, China increasingly exports not only products for final consumption but also the equipment and inputs that allow manufacturing to expand elsewhere. In many emerging supply chains, China supplies machinery and components while developing economies take on assembly, processing and other stages of production.
This does not mean that there’s no competition. It means that the relationship cannot be reduced to the proposition that every additional product made in China is one fewer product made elsewhere. Developing economies can be both competitors with China and participants in production networks supported by Chinese inputs.
The deeper problem with the “China Squeeze” theory is that it ignored the fundamental elements for industrial transfer to happen. Export performance also depends on productivity, electricity supply, port efficiency, financing costs, supplier networks, industrial clusters, technology and local governance.
A factory leaving China does not means it will reappear in Bangladesh or Tanzania. Production relocation requires reliable electricity, functioning roads and ports, a basically educated workforce, effective customs administration and a reasonably predictable investment environment, These were precisely the conditions that China possessed on the eve of reform and opening-up.
Industrial clusters also generate powerful economies of scale. A garment factory needs nearby suppliers of fabric, dyes, buttons, zippers and packaging, as well as efficient logistics. An electronics plant depends on chips, screens, batteries, molds and precision components. Moving a factory to the country with the lowest wages does not necessarily produce the lowest overall costs. Wages are only one part of the equation; a functioning industrial ecosystem is often more important.
Seen from this perspective, one of the Belt and Road Initiative’s most important contributions has been to help developing economies build the conditions needed to receive industrial investment. Ports, roads, railways, power plants and communications networks are not incidental to industrialization. They are what make industrialization possible.
Industrial capacity must also be connected to consumer markets. Here, too, China is moving in a direction that the “China Squeeze” narrative overlooks. Since May 1, 2026, China has applied zero tariffs across all tariff lines to imports from all 53 African countries with which it maintains diplomatic relations.
The significance goes beyond increasing African exports of commodities and agricultural products. Combined with Chinese infrastructure, investment and industrial parks, greater access to the Chinese market could encourage more goods to be processed and manufactured in Africa before export—creating local employment, value added and productive capacity. China should now complement tariff removal with simpler customs, inspection and certification procedures so that African producers can make full use of this access.
Competition is real, but industrialization is not a zero-sum game and China is not pulling up the industrialization ladder. The “China Squeeze” thesis counts the competitive pressure created by Chinese exports while largely ignoring the opportunities created by Chinese investment, infrastructure, intermediate goods and market access.
Opinion
What did the Israeli attack in Syria reveal?
Following Israel’s strike on the Abu al-Duhur Airbase in Syria on August 18, relations between Damascus and Tel Aviv have reportedly broken down. Syrian Foreign Minister Asaad Hassan Sheybani announced in the wake of the attack that all communication with Israel had been severed. “We anticipate that talks regarding a security agreement with Israel will resume in the near future. At present, we do not trust Israel. Our priority is the cessation of attacks against our sovereign territory,” he stated.
The minister’s utter helplessness reverberates through his words.
The post-Assad regime in Damascus ascended to power on the back of American and Israeli support. Consequently, the United States and Israel stand as the primary arbiters of Syria’s destiny. It is precisely for this reason that the Damascus administration has abandoned all claims to its rights over the Israeli-occupied Golan Heights—virtually resigning itself to the occupation and striking it from the agenda. Upon seizing power, it pledged immediate fealty to Washington: “We will pose no security threat to Israel, and we shall thwart anyone who attempts to do so.” It operated under the delusion that it could forge a functional relationship with Israel—led by Netanyahu, a perpetrator of genocide and a convicted war criminal—by appeasing it through concessions. It was gravely mistaken.
For Israel currently holds sway over a substantial portion of Syrian territory. It establishes military outposts across the country, carries out airstrikes at will, and deploys its armor unimpeded.
Similarly, the Israeli-backed PYD-YPG terrorist organization exercises control over an expanse of land vastly disproportionate to its actual strength—territory exceptionally rich in energy resources—solely through the patronage of the US and Israel. Leveraging that very support, it wrenches outsized political, military, and administrative concessions from the Damascus government.
Evidently, the displacement of Iranian and Russian influence in Syria by that of the United States and Israel has brought profound satisfaction to certain circles in our country. Yet what these quarters fail to see, refuse to see, or cannot bring themselves to acknowledge even when confronted with it, is this fundamental reality: Washington envisions a Middle Eastern order wherein Israel commands supremacy, projects expanding power, and dictates terms, while Türkiye raises no objection whatsoever and instead accommodates itself to this architecture. To compel Türkiye’s acquiescence, the US is actively deploying its vast and varied arsenal of leverage.
Lest we forget, the United States had already brought several Arab states to the desired threshold through the Abraham Accords. That process was ultimately intended to culminate in the open, formal consecration of the de facto rapprochement between Saudi Arabia and Israel. That trajectory has not been abandoned; it has merely been placed on ice for the time being. Behind the scenes, Washington maintains an intense flurry of diplomacy with Saudi Arabia, Qatar, Egypt, the United Arab Emirates, and Jordan. Once the wider Middle East, the Islamic world, and the Arab sphere have been fully conditioned to accept the ongoing reality in Gaza—and once the oppressed, grieving, and beleaguered Palestinian people have been driven entirely from their ancestral homeland—this shelved agenda will be revived.
We know that the Zionist establishment in Israel, aligned with American imperialism, chose not to strike Iran first before confronting the Iranian-backed Axis of Resistance, the Shia Crescent, and Tehran’s proxy forces. It executed the exact inverse: it struck first at Syria, at Hamas in Palestine, and at Hezbollah in Lebanon. Only after eroding their efficacy did it turn its sights directly upon Iran. In Syria, the previous regime held out far longer than anticipated—enduring for 13 years and 8 months. As a consequence of the civil war that erupted in March 2011, Assad was ultimately overthrown, finding refuge in Moscow.
When 61 years of Baathist rule, including 53 years of the Assad dynasty, came to a close in December 2024, the emergent regime in Damascus wasted no time in pledging its allegiance to the United States, to Israel, and to the Arab states that backed it, chief among them Saudi Arabia. It proclaimed that it would erect a bulwark against Iran, raise not the slightest objection to Israel, and execute Washington’s directives to the letter.
A broad demographic in Türkiye that welcomed this turn of events swiftly began asserting—under the banner of religious and sectarian fraternity—that this transition worked entirely in Türkiye’s favor. The sheer fallacy of this premise was exposed in short order.
And how was it exposed?
It was exposed by Israel immediately laying the groundwork for a Syria partitioned into four enclaves (Druze, Kurdish, Alawite, and Arab). It was exposed by the renewed revelation that the US-Israel axis intends, sooner or later, to carve up Syria along sectarian and ethnic fault lines—mirroring the precedents of Lebanon and Iraq—in a country roughly composed of 70 percent Sunni Arabs, 10 percent Alawites, 10 percent Kurds, 5 percent Christians, and 5 percent Druze and Turkmens.
It was exposed by the fact that the PYD-YPG terrorist organization, even if denied the entirety of its territorial ambitions, has managed to secure a portion of its political, military, and administrative demands through US–Israeli patronage, thereby being permitted to preserve its existence by settling for a reduced perimeter.
And it was exposed by the resilience of Iran, which, despite suffering immense exhaustion and attrition in the face of American and Israeli aggression, refused to capitulate and maintained its resistance. It was exposed by the failure of the US-Israel tandem to achieve its overarching political and military objectives in Iran, bringing to the fore once again the undeniable truth that Iran possesses an institutionalized state tradition, a national consciousness, and an armed force of a depth and resilience that defy any comparison to Libya, Iraq, or Syria.
Opinion
India’s space sector: A launchpad for global partnerships
Ambassador Gurjit Singh, former Indian Ambassador to Germany, Indonesia, Ethiopia, and the ASEAN and African Union missions

Growing competition in outer space provides India with a unique opportunity to shape a narrative in which collaboration, rather than confrontation, drives space exploration. Recognised as a trustworthy and cost-effective spacefaring nation, India is now well placed to transform its technological advances into enduring international partnerships that contribute to scientific progress, economic growth, and sustainable development.
India’s journey into space has been distinctive. Unlike many space programmes that emerged from Cold War rivalries, India’s programme was conceived as an instrument of national development. Dr. Vikram Sarabhai anchored India’s space vision in practical applications that would improve the lives of ordinary people. Under his leadership, satellites were developed to strengthen communications, weather forecasting, disaster management, healthcare, agriculture and education. This development-oriented philosophy remains central to India’s space programme and resonates strongly with the needs of countries in the Global South, which seek practical applications of space technology rather than prestige alone.
Today, India’s achievements extend beyond developmental applications. The Chandrayaan missions, the Mars Orbiter Mission, the Aditya-L1 solar observatory, and the forthcoming Gaganyaan human spaceflight programme have established India as a nation capable of executing sophisticated and reliable space missions. Chandrayaan-3’s successful soft landing near the Moon’s south pole placed India among an exclusive group of space powers while demonstrating that world-class innovation can be achieved at comparatively modest cost.
India’s growing credibility comes at a time when the global space economy is expanding rapidly. Valued at over US$600 billion today and projected to approach US$1.8 trillion by 2035, the sector is increasingly driven by commercial activity in satellite communications, Earth observation, navigation, climate services, broadband connectivity, and emerging fields such as in-orbit servicing and lunar exploration. Many countries aspire to participate but lack indigenous capabilities. They seek dependable long-term partners rather than merely launch providers.
India possesses the capabilities to meet these requirements. The liberalisation of the space sector in 2020 transformed the ecosystem by opening it to private participation. The establishment of the Indian National Space Promotion and Authorisation Centre (IN-SPACe), the expanding commercial role of NewSpace India Limited, and the growth of private enterprises have created one of the world’s most dynamic emerging space ecosystems. Indian startups are developing launch vehicles, satellite platforms, geospatial applications and propulsion technologies that are attracting global investment and customers. Companies such as Skyroot Aerospace, Pixxel and Agnikul Cosmos have demonstrated that Indian private enterprise can compete internationally in advanced space technologies.
The next step is to internationalise this ecosystem.
Rather than positioning itself only as a low-cost launch destination, India will offer comprehensive partnerships encompassing satellite design, launch services, mission operations, ground stations, astronaut training, capacity building and downstream applications in agriculture, disaster management and maritime security. Such integrated partnerships would be valuable for countries across the Global South and the Indo-Pacific seeking affordable, customised and reliable technologies to meet their development priorities.
India has demonstrated the diplomatic value of such cooperation. Through the South Asia Satellite, it provided communication and developmental benefits to neighbouring countries. Indian launch vehicles have successfully placed hundreds of foreign satellites into orbit for governments, universities and commercial operators around the world. India’s decision to join the Artemis Accords reflects its willingness to participate in the peaceful exploration of the Moon through international collaboration. Cooperation with NASA, the European Space Agency and JAXA has strengthened India’s scientific and technological capabilities.
These partnerships reinforce India’s standing as a leading voice of the Global South. India offers development partnerships based on affordability, reliability and mutual respect rather than creating technological dependence. Space cooperation has therefore become an increasingly important instrument of Indian diplomacy, strengthening bilateral relationships while delivering tangible developmental benefits.
To realise its full potential, India will aim to sustain the momentum of reform. Faster regulatory approvals, greater access to venture capital, stronger intellectual property protection, and closer collaboration among research institutions, industry and academia will be essential. Public procurement policies would continue supporting Indian startups, enabling them to scale up, innovate and integrate into global supply chains.
India is positioned to play a larger role in shaping the governance of outer space. Orbital congestion, space debris, responsible resource utilisation and equitable access to emerging space opportunities are becoming pressing international concerns. As space activities expand, there will be an increasing need for countries capable of building consensus on responsible norms and practices. India’s long-standing commitment to the peaceful uses of outer space, combined with its growing technological capabilities, equips it to contribute meaningfully to the development of rules that promote transparency, sustainability and equitable access.
The coming decade will determine not only which countries lead in space but also how space is governed. With its scientific capabilities, entrepreneurial ecosystem and international credibility, India is uniquely placed to bridge the gap between established and emerging space nations. By building collaborative partnerships founded on inclusivity, mutual benefit and innovation, India can transform its space programme into a major pillar of its global engagement.
In an increasingly divided world, India’s space sector offers a powerful reminder that the greatest achievements in space are those that bring nations together. That may well become India’s most enduring contribution to humanity’s next frontier.
Opinion
Great powers and the fierce rivalry in Africa
In tandem with the retreat of US imperialism and the erosion of its hegemonic capacity, the rivalry among the world’s great powers is intensifying across vast geographies and divergent fronts alike. From Africa to Central Asia, from electric vehicles to artificial intelligence, an acute contest is unfolding—most conspicuously between the United States and China.
History instructs us that wherever great power rivalry takes root, peace remains elusive. Stability cannot endure there. Wars, internal conflicts, coups d’état, and the mass migrations they inevitably trigger dominate the horizon. Nor do great powers desire the cultivation of participatory democracy, human rights, the rule of law, or class consciousness in these lands. Instead, they bolster dictatorships, authoritarian regimes, totalitarian systems, and repressive governance. The imperialist powers harbor no concern for the scarcity of water, drought, or famine in Africa. Their focus is solely fixed on exploitation, plunder, pillaging the resources of the nations upon which they descend, and capturing their domestic markets.
Africa holds singular importance in this context. It commands attention simultaneously by virtue of its sheer expanse, its demographic weight, and its subterranean wealth. In the rivalry across this ancient and impoverished continent, the United States and China lead the vanguard. Russia, too, makes notable maneuvers, though on a less extensive scale. Between the United States and China, the race is particularly fierce regarding the extraction, processing, and conveyance of subterranean resources to world markets.
Africa—endowed with abundant mineral wealth, a population approaching 1.5 billion, and critical strategic importance along global trade routes—whet the appetites of capitalist, advanced, industrialized, imperialist states as a vast, populous, and expanding market. Geopolitically as well, its position cannot be ignored. Africa’s wealth in rare earth elements, precious minerals such as diamonds and gold, and strategic minerals indispensable to advanced technologies—notably copper, cobalt, and lithium—is indisputable.
AFRICA CARRIES NO WEIGHT IN GLOBAL POLITICS
Unlike other continents such as Europe, Asia, or the Americas, Africa possesses no single country that commands prominence in global politics or the world economy. Nor does Africa host an alliance, international organization, or bloc of comparable global stature. In the Americas, there stands a superpower: the United States. In Asia, there are great powers: Russia and China, with India also ascending. In Europe, major, consequential powers endure: the United Kingdom, France, and Germany. Yet on the African continent, no such states exist. What exists in Africa is the rivalry of non-African great powers. Even the 55-member African Union, the institutional body of the continent’s nations, remains far from exerting any real influence—not only in global politics, but even across the African continent itself.
Over the past fifteen to twenty years, Africa has undergone substantial upheavals. Armed conflicts, civil wars, and violence have become pervasive. From Ethiopia to Somalia, Libya to Sudan, armed hostilities have claimed countless lives, destabilized governments, and provoked massive waves of displacement. Terrorist organizations have seized upon these conditions as an opportune opening, and the great powers, in turn, have instrumentalized these terror networks.
In Africa, former nineteenth- and twentieth-century colonial powers such as Britain and France indulge in reveries of bygone eras. They attempt to assert themselves, yet their efforts prove futile. Germany, as Europe’s leading economic, industrial, and technological powerhouse, takes a keen interest in Africa; yet despite this attention, its institutional knowledge and historical experience regarding the continent pale in comparison to those of the British and French. Italy strives to act, but lacks the requisite capacity. The Netherlands and Belgium, once deeply entrenched in Africa, are far removed from their imperial past. Spain and Portugal assert no claim to global primacy. All of these nations languish, to borrow Ahmet Hamdi Tanpınar’s phrase, in “a vague longing for a bygone past.”
China, well aware of Africa’s significance, is investing heavily across the continent. It stands as Africa’s largest trading partner and the primary destination for the continent’s exports. In the provision of loans, credit facilities, and grants to African states, it has outpaced Western institutions. China’s investment and foreign aid capacity, economic leverage, and extensive commercial ties naturally consolidate its political and diplomatic influence across Africa, elevating its visibility and prestige. Under the auspices of the Belt and Road Initiative, Beijing continues to finance large-scale infrastructure investments as well as major communications and transport projects.
THE FEROCITY AND DIMENSIONS OF THE RIVALRY
It is, of course, impossible for Russia to mount massive economic investments, conduct extensive aid operations, or sustain the volume of trade in Africa that China commands. Consequently, it seeks to distinguish itself by guaranteeing the security of local leaders, corporate enterprises, and ruling elites, relying predominantly on private military companies (the operations of the Wagner Group being a case in point). Russia has deployed mercenaries to Mali and the Central African Republic.
The United States, for its part, endeavors to counter China’s expanding influence, economic footprint, visibility, and public diplomacy initiatives in Africa, while simultaneously laboring to reinforce its own economic and political ties with African states. One need only recall that the United States, having intervened in Libya in 2011 through NATO, has directly struck ISIS targets in Somalia. The strategic depth of Washington’s relationship with Cairo is likewise well known.
The United States, China, and Russia also stand out prominently in arms sales to African nations. As the great power rivalry on the continent grows ever sharper, the spectrum of contestation widens accordingly. Cultural rivalry is superimposed upon economic, political, and military dimensions. Because every great power seeking to expand its sphere of influence and reach is determined to block the advance of its competitors, Africa serves both as the stage for and the witness to this unsparing contest. Some experts explain this rivalry through the lens of a new strain of colonialism; others account for it by pointing to the inherent nature, complexity, and multifaceted character of competition between imperialist metropoles.
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