Abstract

China, as a global factory, was able to import intermediate goods from various countries and produce and export final goods from the background of global division of production. However, as the share of value added arising in China’s final products has recently declined, the global production network is showing signs of change. Trade data is generally based on final goods, so it is not possible to analyze global production networks properly. But, when using value-added trade (TiVa) data enable to decomposed to understand the contribution to each part. This study analyzes the changes in China’s value-added trade using the 2005 and 2015 data provided by the OECD. According to the value-added trade analysis, China’s share of the added value of final goods and intermediate goods in 2015 decreased compared to 2005, indicating that China’s position as a global factory has changed. However, the Chinese government’s efforts to reorganize its industrial structure into a high-tech industry have not been visualized, since the value added of final goods is higher than that of intermediate goods. In the case of the high-tech industry, the share of value added in China has decreased, while the share of value added in foreign countries is increasing. The rapid development of technology and the strengthening of protectionism leads to the need to continuously conduct research utilizing various data and methodologies for understanding the changes in global trade structure.

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