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Web of Proceedings - Francis Academic Press

Research on Manufacturing Trade between China and the United States: Based on Global Value Chain

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DOI: 10.25236/icemeet.2019.007

Author(s)

Ji Tongqun

Corresponding Author

Ji Tongqun

Abstract

Based on the perspective of global value chain, this paper completely decomposes the export trade volume of manufacturing industries with different technological content between China and the United States, so as to study the trade situation of manufacturing industries between China and the United States. The study finds that the proposed manufacturing relocation in the United States is contrary to the economic logic, which leads to the increase of manufacturing costs and the decrease of consumer purchasing power in the United States. On the contrary, it will hinder economic growth. As a victim of the trade deficit, the U.S. government accuses China of essentially trying to achieve other political and economic goals. For China, the stock of the US-China trade deficit in goods cannot be changed in the short term. It is required to seek breakthroughs in increments to "climb" the global value chain to higher technology and knowledge intensive production links, processes and service processes.

Keywords

Global value chain, manufacturing industry, trade imbalance,