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The People’s Republic of China’s High-tech Exports: Myth and Reality

Author

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  • Yuqing Xing

    (Asian Development Bank Institute)

Abstract

Trade statistics portray the People's Republic of China (PRC) as the largest exporter of high-tech products. In this paper the author argues that the PRC’s leading position in high-tech exports is a myth created by outdated trade statistics, which are inconsistent with trade based on global supply chains.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 the PRC, thus greatly inflating its exports. He suggests that a value-added-based approach should be adopted to accurately measure high-tech exports. Furthermore, if assembly is the only source of the value-added generated by PRC workers, in terms of technological contribution these assembled high-tech exports are no different from labor-intensive products, so they should be excluded from the high-tech classification.

Suggested Citation

  • Yuqing Xing, 2012. "The People’s Republic of China’s High-tech Exports: Myth and Reality," ADBI Working Papers 357, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0357
    as

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    File URL: http://www.adbi.org/files/2012.04.25.wp357.prc.high.tech.exports.myth.reality.pdf
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    References listed on IDEAS

    as
    1. Xing, Yuqing, 2012. "Processing trade, exchange rates and China's bilateral trade balances," Journal of Asian Economics, Elsevier, vol. 23(5), pages 540-547.
    2. Jason Dedrick & Kenneth L. Kraemer & Greg Linden, 2010. "Who profits from innovation in global value chains? A study of the iPod and notebook PCs," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(1), pages 81-116, February.
    3. Yuqing Xing & Neal Detert, 2010. "How iPhone Widens the US Trade Deficits with the PRC?," GRIPS Discussion Papers 10-21, National Graduate Institute for Policy Studies.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. 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.
    2. Tang, Yingkai & Zhang, Kevin H., 2016. "Absorptive capacity and benefits from FDI: Evidence from Chinese manufactured exports," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 423-429.
    3. Guanghua Wan & Peter J. Morgan & Justin Yifu Lin & Guanghua Wan & Peter J. Morgan, 2016. "Factors Affecting the Outlook for Medium-term to Long-term Growth in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 24(5), pages 20-41, September.
    4. repec:zbw:bofitp:2012_013 is not listed on IDEAS

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    More about this item

    Keywords

    prc; high-tech; value added; iphone;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F20 - International Economics - - International Factor Movements and International Business - - - General

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    This paper has been announced in the following NEP Reports:

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