Asia and Global Production Networks
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Asia and Global Production Networks

Implications for Trade, Incomes and Economic Vulnerability

Edited by Benno Ferrarini and David Hummels

This timely book deploys new tools and measures to understand how global production networks change the nature of global economic interdependence, and how that in turn changes our understanding of which policies are appropriate in this new environment. Bringing to bear an array of the latest methods and data to study global value chains, this unique book assesses the evolution of global value chains at the firm level, and how this affects competitiveness in Asia.
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Chapter 6: Changes in the production stage position of People’s Republic of China trade

Deborah Swenson


In the discussion of developments in global value chains, the People’s Republic of China (PRC) has featured front and center due to the effects of its market reforms, and the country’s 2001 World Trade Organization (WTO) entry. The PRC’s participation in global value chains has also attracted note due to the sheer scale of its involvement in international trade. This attention is certainly warranted due to the heavy involvement of the country’s imports and exports in the relocation and reorganization of production through global value chains. However, while the nature of the PRC’s contributions and connections has been recorded in great detail in a small number of cases, such as for the Apple iPod, detailed knowledge of its production structures and the related trade connections for most products at the same level is rarely available. In the absence of detailed data on the production of all products, economists have managed to use other methods for drawing inferences about shifts in global production by tracking trade in parts and components, or through the use of input–output tables. Due to the operation of special processing export policies, PRC trade has yielded further insights into the developments of global value chains.

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