This paper examines Sino-US trade relations, focusing on the ongoing process of global production sharing, involving splitting of the production process into discrete activities that are then allocated across countries, and the resulting trade complementarities between the two countries in world manufacturing trade. The results suggest that the Sino-US trade imbalance is basically a structural phenomenon resulting from the pivotal role played by China as the final assembly centre in East Asia-centered global production networks. Copyright (c) 2009 The Authors Journal compilation (c) 2009 Institute of World Economics and Politics, Chinese Academy of Social Sciences.
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Article provided by Institute of World Economics and Politics, Chinese Academy of Social Sciences in its journal China & World Economy.