China has taken advantage of the globalisation process and has become a assembly country for firms in Asia which have extended to China their production and trade networks. China’s position in the segmentation of the production processes has fostered its trade in high-technology products. However the rapid technological upgrading of China’s trade is associated with an increasing dependence on foreign capital and technology. The emergence of China has led to the reorganisation of production in Asia and to a triangular trade pattern: firms in advanced Asian economies use China as an export base and instead of exporting finished goods to the US and Europe, now export intermediate goods to their affiliates in China.
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Paper provided by CEPII research center in its series Working Papers with number
2005-09.
Find related papers by JEL classification: F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations F14 - International Economics - - Trade - - - Country and Industry Studies of Trade F15 - International Economics - - Trade - - - Economic Integration O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
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