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

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Why China's Ability to Make a $6 Toaster is a Big Problem for the Global South

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Why China's Ability to Make a $6 Toaster is a Big Problem for the Global South