Decoding China's Export Miracle: A Global Value Chain Analysis

China has emerged as the world's largest exporting nation with more than $2 trillion exports annually, according to this book. It adopts the global value chain (GVC) approach to analyze the Chinese export miracle over the last four decades, focusing on the tasks rather than the gross export value and emphasizing the organizations of modern trade rather than the national comparative advantage. The book identifies three spillover effects of GVCs that originated from brands, technology, and product innovation, and distribution and retail networks of GVCs lead firms. It argues that China's deep integration with GVCs has been a decisive factor for China's emergence as the world's No. 1 exporting nation and the champion of high-technology exports. It also discusses the future trajectory of China-centered GVCs under the shadow of the US-China trade war and the COVID-19 pandemic.

\n Format: Hardback
\n Length: 216 pages
\n Publication date: 08 April 2021
\n Publisher: World Scientific Publishing Co Pte Ltd
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China has emerged as the world's largest exporting nation, generating over $2 trillion in annual exports within a span of less than three decades. This remarkable achievement is commonly referred to as the Chinese export miracle, and it has garnered significant attention from scholars and economists alike. The rapid rise of China as a global exporter is an unprecedented phenomenon that has sparked numerous theories attempting to explain its origins.

In this book, we adopt the global value chain (GVC) approach to analyze the Chinese export miracle over the past four decades. Our focus lies in examining the tasks involved in exports rather than solely focusing on the gross export value. We emphasize the organizations of modern trade rather than relying on the national comparative advantage. The GVC approach provides a systematic framework for understanding how China has transitioned from a closed economy to become the world's top exporting nation. It sheds light on why China, despite being a developing country, has exported more high-technology products to the United States than labor-intensive goods. Additionally, the book identifies the reasons behind almost half of the U.S. trade deficit originating from China.

Through the GVC approach, the book identifies three significant spillover effects that arise from brands, technology, and product innovation. It argues that the distribution and retail networks of GVC-lead firms play a crucial role in facilitating these spillovers. China's deep integration with GVCs has been identified as a pivotal factor in its emergence as the world's No. 1 exporting nation and the champion of high-technology exports.

Furthermore, the book utilizes the example of the iPhone trade and the operations of Apple, the largest factory-less American manufacturer, to illustrate how current trade statistics may exaggerate China's exports to and its trade surplus with the U.S. on the one hand, while underestimating U.S. exports on the other. By examining the experience of the Chinese mobile phone industry, the book demonstrates that the GVC strategy can serve as a shortcut for developing countries to achieve industrialization and enable firms from developing countries to enter high-technology sectors, despite their inherent disadvantages.

In conclusion, China's remarkable export growth over the past four decades is a testament to its economic prowess and adaptability. The GVC approach provides valuable insights into the factors that have contributed to China's success as an exporter, and it offers valuable lessons for developing countries seeking to replicate its achievements. By adopting a holistic perspective that emphasizes the roles of organizations and networks, this book contributes to our understanding of the Chinese export miracle and its implications for global trade and economic development.

\n Weight: 466g\n
Dimension: 236 x 157 x 20 (mm)\n
ISBN-13: 9789811229626\n \n