China’s trade surplus with the U.S. has persistently increased since 2001 when China participated in the World Trade Organization (WTO). China’s WTO entry is assessed to improve the competitiveness of its products in the global market and to increase its exports, especially in the U.S.However, in this paper we argue that increased Chinese exports to the U.S.include the effect of restructured Asian production network, which has been paid less attention to. China’s WTO entry stimulated investment in China from Asian countries because China’s entry facilitated a fuller incorporation of China’s market into global markets and the Chinese economy’s compliance with global standards. This new surge of foreign direct investment (FDI) into China from Asian countries has restructured Asian production network; as early-industrialized Asian countries relocated their production base to China; Chinese production system has been more integrated to Asian production network. As a result, restructured Asian production network, we argue, has expanded China’s exports to U.S. while constraining the growth of U.S. exports from other Asian countries. At the same time, stagnant U.S. exports from those Asian countries were compensated by their increased exports to China. Thus, we call attention to the global value chain perspective as a way to understand recent trends in international trades between Asian countries and the U.S.
|Translated title of the contribution||China’s post-WTO export growth and the restructuring of Asian production network: a global value chain approach|
|Number of pages||28|
|Journal||Journal of Social Research (한국사회)|
|Publication status||Published - 2012|
- Asian production network
- global value chain perspective
- international trade