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China's High-tech Exports: Myth and Reality

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  • Yuqing Xing

    (National Graduate Institute for Policy Studies)

Abstract

China's leading position in high-tech exports is a myth created by outdated trade statistics, which are inconsistent with the trade based on global supply chains. Assembled high-tech products, made with imported key parts and components, accounted for 82% of China's high-tech exports. Current trade statistics mistakenly credit entire values of these assembled products to China, thus greatly inflate the export value. For instance, in 2009 China's export in the iPhone amounted US$4.6 billion, of which only 3.6% was the value added by Chinese workers; its annual export in laptop PC valued at US$52 billion, but assembly accounted for only 3% of the gross value. In addition, 83% of China's high-tech exports was attributed to foreign invested firms, in particular Taiwanese owned companies. Taiwan-IT companies have relocated 95% of their production/assembly capacity into and transferred mainland China to a top assembler of information and communication technology, such as laptop PCs, digital cameras and all i-products.

Suggested Citation

  • Yuqing Xing, 2011. "China's High-tech Exports: Myth and Reality," GRIPS Discussion Papers 11-05, National Graduate Institute for Policy Studies.
    • Handle: RePEc:ngi:dpaper:11-05
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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; 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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