The Shifting Structure of China’s Trade and Production

Author/Editor:

Li Cui ; Murtaza H Syed

Publication Date:

September 1, 2007

Electronic Access:

Free Full Text (PDF file size is 343 KB).Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper uses disaggregated trade data to assess how the expansion of China's production capacity and its changing production structure may be affecting its trade linkages with other countries. It finds that China is moving away from traditional assembly operations in its processing activities and its exports have started to rely more on domestically sourced components. In turn, China's imports and exports have begun to delink, with increased domestic sourcing contributing to the recent increase in its trade balance. In addition, as China moves up the value chain, both its imports and exports have become more sophisticated than in the past. As a result of these shifts, China may be becoming more exposed to fluctuations in the strength of the global economy, and changes in its exchange rate could have a bigger impact on the trade balance and the domestic economy than commonly believed.

Series:

Working Paper No. 07/214

Subject:

English

Publication Date:

September 1, 2007

ISBN/ISSN:

9781451867787/1018-5941

Stock No:

WPIEA2007214

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

29

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