The Shifting Structure of China's Trade and Production
This paper uses disaggregated trade data to assess how the expansion of China''s production capacity and its changing production structure may be affecting its trade linkages with other countries. It finds that China is moving away from traditional assembly operations in its processing activities and its exports have started to rely more on domestically sourced components. In turn, China''s imports and exports have begun to delink, with increased domestic sourcing contributing to the recent increase in its trade balance. In addition, as China moves up the value chain, both its imports and exports have become more sophisticated than in the past. As a result of these shifts, China may be becoming more exposed to fluctuations in the strength of the global economy, and changes in its exchange rate could have a bigger impact on the trade balance and the domestic economy than commonly believed.
|Date of creation:||01 Sep 2007|
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- Hiratsuka, Daisuke, 2005. "The "Catching up" Process of Manufacturing in East Asia," IDE Discussion Papers 22, Institute of Developing Economies, Japan External Trade Organization(JETRO).
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"The Relative Sophistication of Chinese Exports,"
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12173, National Bureau of Economic Research, Inc.
- Dani Rodrik, 2006.
"What's So Special about China's Exports?,"
NBER Working Papers
11947, National Bureau of Economic Research, Inc.
- Peter K. Schott, 2004. "Across-product Versus Within-product Specialization in International Trade," The Quarterly Journal of Economics, MIT Press, vol. 119(2), pages 646-677, May.
- Françoise Lemoine & Deniz Ünal-Kesenci, 2002. "China in the International Segmentation of Production Processes," Working Papers 2002-02, CEPII research center.
- Coudert, Virginie & Couharde, Cecile, 2007. "Real equilibrium exchange rate in China is the renminbi undervalued?," Journal of Asian Economics, Elsevier, vol. 18(4), pages 568-594, August.
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