Net oil exports embodied in China's international trade: An input–output analysis

Abstract

As the world's second largest oil importer, China has been one of the important factors which affect the global oil market. In recent years, China has attained great international trade surplus through exporting a large number of “Made in China” products even during the global economic crisis. Due to direct and indirect effects in production chain, each "Made in China" product contains oil directly or indirectly. China is exporting much oil through “Made in China” products, which is not often considered even within China. An input–output model is established to calculate oil embodied in the international trade of China. The research results suggest the following: China's net oil exports embodied in the international trade were 87.02 million tonnes in 2007; manufacture of communication equipment, computers and other electronic equipment is the largest sector to export embodied oil; United States, China Hong Kong SAR and Netherlands are the top three countries and regions which benefit most from the embodied oil in “Made in China” products. China's adjusted degree of dependence on foreign oil is 24.9% in 2007, and 38.4% in 2011 if net oil exports embodied in international trade are considered.