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Relocation from China (with Chinese Characteristics)

Author

Listed:
  • Jason Garred

    (Department of Economics, University of Ottawa, Ottawa, ON)

  • Song Yuan

    (School of Economics, Zhejiang University)

Abstract

The share of Chinese goods in US imports has fallen sharply since 2018, as production for the US market has shifted from China to other countries. Does this trend represent US-China ‘decoupling’, or are other US trade partners playing growing roles as intermediaries in ongoing US-China economic relations? Using firm-level and product-level data, we find that Chinese manufacturing investment and Chinese-produced parts have increasingly flowed to third-country ‘winners’ who have simultaneously increased their US market share. We present evidence that our findings capture expanding indirect relationships linking China and the US rather than broader economic trends within the ‘winners’ themselves.

Suggested Citation

  • Jason Garred & Song Yuan, 2024. "Relocation from China (with Chinese Characteristics)," Working Papers 2401E, University of Ottawa, Department of Economics.
    • Handle: RePEc:ott:wpaper:2401e
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    File URL: http://hdl.handle.net/10393/45995
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    3. Thi Thanh Ha DOAN & Asei ITO & Changyuan LUO & Hongyong ZHANG, 2025. "Geopolitical Risk and Supply Chain Diversification: Evidence from Japanese multinational firms," Discussion papers 25112, Research Institute of Economy, Trade and Industry (RIETI).

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    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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