Why the 'China squeeze' argument does not add up

The claim that China is "squeezing" developing countries out of manufacturing opportunities is built on flawed assumptions, selective use of data and questionable methodology, resulting in conclusions that are misleading and at odds with the realities of global trade.

In May, the Washington-based Peterson Institute for International Economics published a report titled "China's mercantilist squeeze on developing countries". Its central argument is that even as China moves toward higher incomes and more technologically advanced industries, it retains an unusually large share of global exports in labor-intensive manufacturing.