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China's High-Tech Exports: The Myth and Reality

Author

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  • Yuqing Xing

    (Asian Development Bank Institute and National Graduate Institute for Policy Studies Kasumigaseki Building 8F 3-2-5 Kasumigaseki Chiyoda-ku, Tokyo 100-6008 Japan)

Abstract

Trade statistics portray China as the largest exporter of high-tech products. This paper demonstrates that China's leading position in high-tech exports is a myth created by outdated trade statistics, which are inconsistent with trade based on global supply chains. Current trade statistics mistakenly credit entire values of assembled high-tech products to China, thus greatly inflating its exports. This paper adopted a value-added approach to more accurately measure high-tech exports, revealing that, in 2009, China's value-added accounted for only about 3 percent of the total value attributed for its exports of iPhones and laptop PCs. Furthermore, if assembly is the only source of value-added by Chinese workers, in terms of technological contribution, these assembled high-tech exports are indifferent from labor-intensive products, and so they should be excluded from the high-tech classification. © 2014 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.

Suggested Citation

  • Yuqing Xing, 2014. "China's High-Tech Exports: The Myth and Reality," Asian Economic Papers, MIT Press, vol. 13(1), pages 109-123, Winter.
    • Handle: RePEc:tpr:asiaec:v:13:y:2014:i:1:p:109-123
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    Cited by:

    1. Mercedes Campi & Marco Due~nas & Le Li & Huabin Wu, 2018. "Diversification, economies of scope, and exports growth of Chinese firms," Papers 1801.02681, arXiv.org, revised Jan 2018.
    2. Xing Yuqing, 2016. "Global Value Chains and New Thinking on Trade and Industrial Policy," GRIPS Discussion Papers 16-07, National Graduate Institute for Policy Studies.
    3. Zhu, Zhen & Morrison, Greg & Puliga, Michelangelo & Chessa, Alessandro & Riccaboni, Massimo, 2018. "The similarity of global value chains: A network-based measure," Network Science, Cambridge University Press, vol. 6(4), pages 607-632, December.
    4. Xing, Yuqing, 2014. "Measuring Value Added in the People’s Republic of China’s Exports: A Direct Approach," ADBI Working Papers 493, Asian Development Bank Institute.
    5. John Whalley & Xiliang Zhao, 2010. "The Contribution of Human Capital to China's Economic Growth," NBER Working Papers 16592, National Bureau of Economic Research, Inc.
    6. Xing, Yuqing, 2018. "Rising wages, yuan's appreciation and China's processing exports," China Economic Review, Elsevier, vol. 48(C), pages 114-122.
    7. Xing, Yuqing, 2012. "Processing trade, exchange rates and China's bilateral trade balances," Journal of Asian Economics, Elsevier, vol. 23(5), pages 540-547.
    8. Yuqing Xing, 2011. "China’s exports in information communication technology and its impact on Asian countries," Economic Change and Restructuring, Springer, vol. 44(1), pages 135-147, April.
    9. Kozo Kiyota & Keita Oikawa & Katsuhiro Yoshioka, 2017. "The Global Value Chain and the Competitiveness of Asian Countries," Asian Economic Papers, MIT Press, vol. 16(3), pages 257-281, Fall.
    10. Chen, Xi & Funke, Michael, 2013. "The dynamics of catch-up and skill and technology upgrading in China," Journal of Macroeconomics, Elsevier, vol. 38(PB), pages 465-480.
    11. Yuqing Xing, 2016. "Global Value Chains and China's Exports to High-income Countries," International Economic Journal, Taylor & Francis Journals, vol. 30(2), pages 191-203, June.
    12. Zhao, Yuhuan & Liu, Ya & Qiao, Xiaoyong & Wang, Song & Zhang, Zhonghua & Zhang, Yongfeng & Li, Hao, 2018. "Tracing value added in gross exports of China: Comparison with the USA, Japan, Korea, and India based on generalized LMDI," China Economic Review, Elsevier, vol. 49(C), pages 24-44.
    13. Xiao, Yangao & Tylecote, Andrew & Liu, Jiajia, 2013. "Why not greater catch-up by Chinese firms? The impact of IPR, corporate governance and technology intensity on late-comer strategies," Research Policy, Elsevier, vol. 42(3), pages 749-764.
    14. Sawhney, Aparna & Kahn, Matthew E., 2012. "Understanding cross-national trends in high-tech renewable power equipment exports to the United States," Energy Policy, Elsevier, vol. 46(C), pages 308-318.
    15. Shi Li & ShanshanWu & Chunbing Xing, 2018. "Education Development and Wage Inequality in Urban China," Asian Economic Papers, MIT Press, vol. 17(2), pages 140-151, Summer.

    More about this item

    Keywords

    China; exports; high-tech; value-added; iPhone;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • N75 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Asia including Middle East

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