How the next China shock is shaping hearts and minds
South China Morning Post
by Lizzi C. LeeFebruary 21, 2026
AI-Generated Deep Dive Summary
China’s role in the global economy has long been defined by its ability to produce goods cheaply and at an unprecedented scale. The phrase “Made in China” became synonymous with industrial capacity, often sparking debates about its impact on global markets. After joining the World Trade Organization (WTO), Chinese firms deeply integrated themselves into global supply chains, primarily operating at the lower end of the value chain. This meant producing goods for Western and Japanese companies, which controlled premium segments and branding.
However, this dynamic is beginning to shift. China’s economy is moving up the value chain, with domestic firms increasingly focusing on innovation, higher-end manufacturing, and brand development. This transformation has significant implications for global trade and supply chains. By reducing reliance on low-cost production and instead emphasizing quality and technology, China aims to establish itself as a leader in premium markets.
This shift matters because it reflects broader changes in the global economy. As China transitions from being a factory to becoming an innovator, it challenges existing power structures and economic hierarchies. Western companies may face tougher competition in their traditional high-value segments, while developing countries could see new opportunities or disruptions in their export-driven industries.
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Originally published on South China Morning Post on 2/21/2026