NAIROBI, Aug. 10 (Xinhua) -- China's manufacturing sector has provided important support for industrialization in countries of the Global South through infrastructure, capital, technology, production experience and global markets, a Kenyan expert has said, slamming the so-called "China squeeze" accusation.
In a recent written interview with Xinhua, Lewis Ndichu, a research policy analyst at the Kenya-based think tank Africa Policy Institute, said that the so-called "China squeeze" narrative is deeply misleading. It oversimplifies complex international economic dynamics into a zero-sum contest, falsely assuming that China's economic development inevitably comes at the expense of other developing countries.
"The reality is that China has become a major trading partner, source of investment, infrastructure developer and technology partner for much of the Global South," he said. "Its engagement has increasingly moved beyond the traditional export of raw materials toward supporting connectivity, manufacturing and industrial capacity."
In Ndichu's view, China's manufacturing sector has helped lower the costs of industrialization for many African economies.
He said to understand this, one must look at the foundational prerequisites for industrialization. For years, China has participated in the development of Kenya's railways, roads, ports and energy infrastructure, improving connectivity, easing logistical bottlenecks and strengthening Kenya's links to regional markets.
"Better connectivity has lowered cargo transport costs, attracted investment, strengthened supply chains, and positioned Kenya as a regional production and logistics hub," he noted.
Ndichu said that as infrastructure conditions have improved, Chinese companies have also increased their manufacturing investment in Kenya, with cooperation extending from building materials and agricultural processing to electric mobility and renewable energy.
"These investments are creating jobs, strengthening local supply chains and introducing new technologies and skills," Ndichu said.
He added that Chinese manufacturing investment was becoming "a catalyst for deeper industrialization, stronger domestic enterprises and greater integration into regional value chains," helping Kenya move gradually from a market for finished goods toward a center of production, value addition and technological learning.
The ultimate measure of the development value of foreign investment should not only be the scale of capital inflows, but also whether it creates jobs, develops suppliers, transfers skills and technology, and embeds production within the local economy, according to Ndichu.
Ndichu said investment by Chinese companies in the electric mobility sector has brought advanced technology and manufacturing capabilities to Kenya, helping electric buses, electric motorcycles, batteries and related services gradually form a new industrial ecosystem.
"The deeper value, however, lies not simply in the capital invested, but in the capabilities that remain, like skills, technology, suppliers and productive capacity," he noted.
He highlighted that the development of local industrial capabilities was closely linked with Kenya's green transition.
Kenya currently derives about 90 percent of its electricity from renewable sources, with geothermal, hydro, wind and solar forming the backbone of its energy system.
Ndichu said Chinese green technologies have contributed to Kenya's energy transition not only by providing clean-energy equipment, but also by lowering technological and cost barriers.
Chinese expertise in solar photovoltaics, batteries, power electronics and electric mobility has helped broaden that transition, he said, adding that "the significance is increasingly moving from importing technology to embedding green technology within Kenya's productive economy."
Speaking of the Chinese market, Ndichu said it has provided new space for industrial development in the Global South.
Since May 1, China has fully implemented a zero-tariff treatment for 53 African countries with which it has diplomatic relations.
Ndichu said the policy would not only help reduce the costs of such goods as avocados, coffee, chilies and apples entering the Chinese market, but could also stimulate investment in agricultural processing, cold chains, packaging and logistics, helping Africa move from exporting primary commodities toward exporting processed and higher-value products.
On China's cooperation model with other countries of the Global South, Ndichu said a distinctive feature of China's cooperation was its emphasis on development through infrastructure, productive capacity and economic partnership, while traditional Western development assistance was often accompanied by broader governance requirements involving institutional, market, democratic and social-policy reforms.
He said China's cooperation model was attractive to the Global South in part because it placed greater emphasis on allowing developing countries to choose development paths suited to their own national circumstances.
"China's approach has generally placed greater emphasis on sovereignty, non-interference and practical development outcomes," he added.
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