Arbeitspapier

China's evolving role in global production networks: Implications for Trump's trade war

This paper examines China's evolving role in global production networks and its implications for assessing the potential impact of the "trade war" declared by President Trump. The analysis, which is based on a systematic disaggregation of trade based on global production sharing into components and final assembly, suggests that the Sino-US trade gap is a structural phenomenon driven by the pivotal role played by China within East Asia cantered production networks. The global competitiveness of US MNEs depends on their ability to use China as the production base for supplying the rest of the world, and China is now an important supplier of components used in US manufacturing. Given this intricate interdependence between the two economies within global production networks, attempt to impose punitive tariffs on China is bound to face formidable opposition from business interests in the United States. Even if the protectionist threat becomes a reality, the impact may not be as damaging as commonly thought because global production sharing has considerably weakened the link between relative prices and trade flows.

Sprache
Englisch

Erschienen in
Series: Discussion Paper Series ; No. 34

Klassifikation
Wirtschaft
Trade Policy; International Trade Organizations
Empirical Studies of Trade
International Relations and International Political Economy: Other
Thema
China
global production networks
Sino-US trade dispute
punitive tariffs
MNEs

Ereignis
Geistige Schöpfung
(wer)
Athukorala, Prema-chandra
Ereignis
Veröffentlichung
(wer)
University of Freiburg, Department of International Economic Policy (iep)
(wo)
Freiburg i. Br.
(wann)
2017

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Athukorala, Prema-chandra
  • University of Freiburg, Department of International Economic Policy (iep)

Entstanden

  • 2017

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