China’s exports feed the Global South’s industrial engines

A scaremongering narrative has taken root in Western corridors and financial press columns: China, having saturated developed markets, is now aiming to crush fragile industries in developing nations, effectively slamming the door on their industrial dreams. It is a convenient little tale. However, it does not hold up against empirical evidence.

Over the same period, the share of consumer goods fell from about 36 per cent to roughly 33 per cent while the share of capital goods held steady at around 20 per cent. This is not the cargo manifest of a predator hunting for sneaker shelf-space. It is the supply list of a systemic partner that is feeding other nations’ industrial engines.

Now look at the sector where you would expect the fiercest head-to-head competition – labour-intensive consumer goods. If China were truly monopolising the export space of others, its share would be stable or climbing. In reality, it is falling. China’s share of global garment exports fell to just under 30 per cent in 2024, a significant drop from its peak of over 40 per cent about a decade ago.

Footwear tells a similar story. China’s share has dropped while Indonesia and India have gained ground. Instead of elbowing others aside, China is moving up the value chain and creating space for lower-income nations in other sectors.

China is not shipping goods to outcompete Global South producers; it is shipping the building blocks that make factories viable. According to an Oxford Economics report, nearly half of China’s total exports are intermediate goods – components and raw materials that feed into other countries’ production lines rather than finished products for consumers.