China Exports Research Articles

Decoupling of the Growing Exports in Foreign Trade from the Declining Gross Exports of Embodied Energy.

Transforming the growth mode and realizing green and low-carbon development has been a global consensus and an important governance concept of socialism with Chinese characteristics in the new era. Whether economic growth can be decoupled from carbon emissions and energy consumption is a key indicator for measuring green and low-carbon development and is an inevitable requirement for achieving the goal of carbon neutrality before 2060. Based on the input–output tables for 2002, 2007, 2012, and 2018, this article calculated the embodied energy of export in China’s foreign trade and studied the elastic relationship and trend between the growth of foreign trade exports and the total embodied energy of export since China’s accession to the WTO. The following conclusions were drawn: (i) The embodied energy of China’s export was strongly decoupled from total export for the first time from 2012 to 2018, signaling that China’s economic, industrial, and energy structures entered a new stage. It was also the first strong decoupling achieved in the process of decoupling economic growth from energy consumption for the adoption of a low-carbon development path. Due to the pressure of international competition, the export sector had a relatively advanced level of efficiency, so it achieved decoupling earlier than the overall manufacturing sector and the consumption sector, which was in line with economic laws and the characteristics of China’s development stage. (ii) From 2007 to 2018, the embodied energy of export occupied a much smaller proportion of China’s total energy consumption, falling from the peak of 31.48% in 2007 to 26.57%, a drop of 4.91 percentage points. It showed that a larger share of energy consumption had taken place domestically and that the model mainly relying on export expansion to drive economic growth had begun to adjust. The conclusion of this research could also support the assertion of ‘accelerating the construction of a new development pattern with the domestic economic cycle as the main body and the domestic and international dual cycles promoting each other’ from the perspective of external exports and energy consumption. (iii) A causal analysis of the decoupling between the embodied energy of export and export volume demonstrated that, from 2002 to 2007 and from 2007 to 2012, the embodied energy of export and total export maintained the same direction but had different growth rates. The increase in total export volume was the main reason affecting the embodied energy of export. With the rapid growth of total export volume, the embodied energy of export was also growing rapidly. From 2012 to 2018, the embodied energy of export declined, and an analysis showed that the ‘total energy consumption coefficient’, i.e., technology effect, was the primary cause of the decline. With China’s high-quality development, green transformation, and other strategic advancements, the decoupling trend is expected to continue and expand to a larger economic field.

Does regional value chain participation affect global value chain positions? Evidence from China

Does participation in the ASEAN-China regional value chain (RVC) affect China’s manufacturing enterprises’ global value chain (GVC) positions in the context of the establishment of the ASEAN-China Free Trade Area (ACFTA)? In this paper, we discuss the theoretical mechanisms and impacts of RVC participation on GVC positions and use an input-output model to decompose the gross exports of China by different sources and destinations. The model measures China’s manufacturing industries’ total, upstream and downstream participation within the ASEAN-China regional value chain. Using panel data from the OECD for 2005 to 2015, the empirical results show that (1) the participation of China’s manufacturing industries in the RVC is conducive to improvement in their GVC positions, (2) moving to more upstream can indeed promote the GVC positions of enterprises, and (3) in contrast to labour-intensive and capital-intensive manufacturing, knowledge-intensive manufacturing in upstream activities of the RVC contributes the most to GVC positions. It is suggested that China should develop knowledge-oriented industries and move to more upstream of the ASEAN-China RVC to raise manufacturing industries’ positions in the GVC.

Exploring Motivating Moderators in The Government RD Support-Innovation-Export Mediated Relationship

How and under what conditions does government R&D support lead to innovation and in turn increased export activities? We examine the relationship between government R&D support and export intensity, mediated indirectly by innovation, in a balanced panel of 289 innovative exporters in China. Leveraging the knowledge-based view, we also explore the role of moderator variables in relation to bonus incentives (extrinsic motivators) and employee suggestions (intrinsic motivators). We extend our knowledge of the motivators in the government R&D support-innovation-export mediated relationship, where we found that extrinsic motivators facilitate the R&D support-innovation link, and intrinsic motivators turned out to be effective in innovation-export link. These results have relevance for both innovation and export literature.

Product Quality Measurement, Dynamic Changes, and the Belt and Road Initiative Distribution Characteristics: Evidence from Chinese Wooden Furniture Exports

As the most important forest product in the export of China, wooden furniture is facing increasingly fierce international competition and has a strong need for quality improvement. Based on the endogenous determination model of quality, this paper measures the quality of Chinese wooden furniture in exports from 1998 to 2017, by using product-level trade data of BACI CEPII. From the perspectives of the overall and sub-category quality, it examines the characteristics of dynamic changes in the product quality and its regional distribution of “the Belt and Road Initiative” countries. The results show that the quality of Chinese wooden furniture in exports is lower than that of wood-based panels and paper products. It remains stable after a slight increase from 2001 to 2005, but the quality level is always low. Among the sub-categories, wooden furniture not for kitchens, offices, or bedrooms has the lowest quality, while wooden office furniture has the highest one. The three dominant sub-categories that account for a high export share are all low in quality, while the small proportion sub-categories are all of higher quality, implying a strong imbalance. In particular, the quality of the main export products, upholstered wooden seats and wooden furniture not for kitchen, office, or bedroom use, has continued to decline, highlighting the plight of the quality growth of Chinese wooden furniture. For the BRI markets, the quality of Chinese wooden furniture exported to the region has declined slightly since 2012. However, different markets have shown different characteristics in the quality level and the direction of change. In terms of quality level, the qualities of wooden furniture exported to Malaysia, Israel, the United Arab Emirates, Vietnam, and the Philippines are relatively high. In terms of changing trends, the qualities of wooden furniture to Malaysia, Thailand, Indonesia, and Israel are showing a rising trend. In this case, accurately identifying the quality of different export categories of furniture products and their changing characteristics can help furniture enterprises make better production and operation decisions, promote the formation of a good business environment, and foster new comparative advantages and international competitiveness.

THE IMPACT OF CHINESE ENTREPRENEURS' EMOTIONAL LABOR AND WORK PRESSURE ON EXPORT PROFITABILITY: EVIDENCE FROM CHINA

THE IMPACT OF CHINESE ENTREPRENEURS' EMOTIONAL LABOR AND WORK PRESSURE ON EXPORT PROFITABILITY: EVIDENCE FROM CHINA

Trading Kuznets curve: empirical analysis for China.

Due to inspiring growth over the past 20 years, the dynamics of Chinese exports have been the focus of many researchers. In contrast to current literature, this study examines the quadratic relationship between China’s real exports to 154 partner countries and the income of trading partners from 1996 to 2019. The findings obtained from the second generational econometric analysis confirm cross-section dependence and heterogeneous slope among panel members. Second, while the GDP per capita of partner countries has a positive impact on China’s exports, the quadratic of GDP per capita has a negative impact. These findings indicate an inverted U-shaped relationship between China’s exports and GDP per capita of its partner countries—thus, validating the trading Kuznets curve (TKC) hypothesis. The appreciation of the Renminbi (RMB) has statistically significant negative effects on China’s exports. From a policy perspective, Chinese policymakers could consider the TKC hypothesis when determining market and export strategies. Additionally, the Chinese monetary authority could consider stabilizing the value of the RMB.

Do food safety regulations impede agrifood exports of China?

AbstractThis study uses the gravity model to estimate the effects of food safety regulations implemented by the partner countries on agri‐food exports of China. Annual bilateral trade data are compiled for major agrifood export items of China like apples, kidney beans, garlic, mandarins and orange, meat of swine, and tea. The panel data are estimated using both the fixed‐ and random‐effect models. Results of the study show that all the standard gravity‐type variables carry signs according to prior expectations and economic theory. The study concludes that food safety regulations have no effect on exports of all the selected commodities except meat of swine.

Risk Analysis and Countermeasures of Excessive Pesticide Residues in China's Export of Grapes to ASEAN

Risk Analysis and Countermeasures of Excessive Pesticide Residues in China's Export of Grapes to ASEAN

Comparison of the RCA Between China and KOR: From the Perspective of Value-Added

Purpose - This paper empirically explores the RCA of electrical equipment trade between China and Korea from the perspective of gross trade and value-added trade. The goal of this paper is to scan the electrical equipment's RCA, the decomposition of gross exports, and the impacts of an exerted shock.
 Design/methodology - We applied the domestic value-added method in measuring the RCA, which could be more accurate than traditional RCA since it excludes foreign value-added. Based on the research purpose, this paper follows the framework of Koopman, Wang, and Wei (2014)—as extended by Wang, Wei, and Zhu (2018). It extracts the data from the 2019 Multi-regional Input-Output (MRIO) databases compiled by the Asian Development Bank in January 2021.
 Findings - After rigorous examination, the main findings are as follows: First, the electrical equipment sector maintains a consistent comparative advantage in either assessing method. Second, China exports more gross goods of electrical equipment to the world than South Korea does, but there is a trade deficit with Korea. Third, South Korea and P.R. China are the most significant bilateral partners of foreign value-added sourcing. Finally, it is surprising that there is a shock on electrical equipment; the partner’s service, as well as manufacturing sectors, would be affected.
 Originality/value - This paper explores the revealed comparative advantage between Korea and China from traditional gross export and value-added perspectives. Second, we apply the information from the 2019 MRIO database compiled by the Asian Development Bank in January 2021, reflecting the current situation. Third, this paper analyzes the electrical equipment and the impacts on other parties’ sectors. Finally, we carry out the subjects that deserve to be investigated in the future.

Study on the Trade Potential of Chinese Electromechanical Products Export to RCEP Countries

This paper provides a detailed analysis of the complementarity and competitiveness of Chinese electromechanical product trade with the 14 other RCEP member countries through the G-L index and the ESI index. Our study found that China is highly competitive in electromechanical products with Japan, Malaysia, South Korea, Philippines and New Zealand. China's mechanical and electrical products trade with Australia, Brunei, Cambodia, Laos, New Zealand, Myanmar and Indonesia is highly complementary. Subsequently, this paper made an empirical analysis of the influencing factors of China's RCEP export countries from 2005 to 2019. The article found that the GDP of RCEP, Chinese GDP, the population size of RCEP, and the trade openness of RCEP have different effects on China's export of mechanical and electrical products. China's mechanical and electrical products export to RCEP countries are in the "potential development type". In view of this, suggestions are made on how to improve China's export of mechanical and electrical products to RCEP countries.

The role of the One-Belt One-Road initiative in China?s exports and global value chains

Research background: China is regarded as the ?world factor? highly involved in international trade and plays an increasingly important role in the global value chains (GVC). Additionally, the ?One-Belt One-Road? (OBOR) initiative was proposed by the Chinese government to further promote China in the international market. Purpose of the article: The article explores the role of the OBOR in China?s exports and global value chain. It aims at: 1) verifying how OBOR impacts the volume of China's export and value-added export to its partners. 2) checking whether or not OBOR strengthens the industrial connection between China and its participants at the GVC level. 3) examining the different roles of corridors in China's exports and GVC. Methods: The empirical analysis is based on the augmented gravity model of international trade, which comprises China and its 197 partners in the period 2000?2018. The model is estimated for gross export as well GVC measured by domestic value added in export and the value contributed by a partner to China?s exports. Findings & value added: In general, there is a significant positive correlation between OBOR and the volumes of China?s export, domestic value-added trade and the value of partner?s contributed in China?s export. However, some of the results are blurred by OLS and FE methods. The author points out that FE-PPML estimation methods are more adequate. Among the six economic corridors, Bangladesh-China-India-Myanmar (BCIM), China-Pakistan (CP) and China Indochina Peninsula (CIP) were proven to play a prominent role in promoting China?s export, DVA and strengthening the links of global value chains. It is worth noting that the China-Mongolia-Russian Federation (CMRF) corridor harms China's export and DVA trade, and at the same time promotes countries in its region that benefit from trade with China.

Africa’s Poverty and Famines: Developmental Projects of China on Africa

Poverty exists without any face; it is a multifaceted and complex phenomenon. Poverty and famines existed before human civilization and culture. Human culture existed 0.07 million years ago, and civilization began 6000 years ago. In a modern civilized society, ‘first famine in human history occurred in 1708 B.C. From 1708 BC to 1878 AD, 350 famines occurred in various spheres of the world. The Encyclopedia Britannica listed 31 main famines from prehistoric to the 1960s. The sub-continent has also faced eleven severe famines from 1769-70 to 1943, and about 40.9 million people have died due to these famines. Similarly, more than 2 billion people live below the poverty line. Besides, China left 800 million people due to ‘Open Door Policy’. Now she is changing the world's shape through BRI. Africa is a complex and perplexing region of the world. Because, Africa is facing all the root problems of the world, i.e., poverty, massive unemployment and income inequality, mono-culture political economy, border disputes, intra-state wars, and ethnic and lingual clashes. In the land of Africa, the first famine was recorded 2273 years ago in Ethiopia’. About 2,582 languages[i] and 1,382 dialects are found on the African continent. From 1945 to 1999, humanity faced 25 interstate wars, most of which occurred in Africa. Therefore, 127 civil wars happened among 73 states in the same era, and 16.2 million people died. The Export and Import Bank of China will spend 1US$ trillion on the African continent in 2025.
 [i] Language which is speaking in Africa, Arabic (170 million) English (130 million), Swahili (100), French (115), Berber (50), Hausa (50), Portuguese (20) and Spanish (10) (Spolsky, 2018)

Pengaruh Ekspor dan Impor China terhadap Pertumbuhan Ekonomi Indonesia dengan Kurs sebagai Variabel Intervening

This study aims to determine the direct and indirect effects of China's exports and imports on Indonesia's economic growth through the exchange rate during 2000-2019. The method used is a quantitative approach using secondary data obtained from the publications of the Central Statistics Agency (BPS), World Bank Data, and the International Monetary Fund (IMF). The analytical tool used is path analysis. Data is processed through E-views. The results of this study show that directly Indonesia-China exports had a positive and significant impact on Indonesia's economic growth. While, directly Indonesia-China imports did not have a significant effect on Indonesia's economic growth. Indirectly Indonesia-China exports and imports have no significant effect on Indonesia's economic growth through the exchange rate.

Estimating the environmental and employment impacts of China's value-added trade from the perspective of value chain routes.

This study aims to evaluate the environmental and employment impacts of China's value-added trade using the gross exports decomposition method and balance of avoided factor content. The major findings are that China's value-added trade overall leads to increases in global emissions and employment, which are mainly affected by the characteristics of China's exports. However, China's imports indirectly promote global emissions reductions and have a significant driving effect on foreign employment. Trade through onefold value chains plays a dominant role in determining both impacts. Simple global value chain (GVC)-related trade contributes most to reducing global emissions but decreases global employment as well. Complex GVC-related trade overall increases global employment and emissions. At the bilateral level, the impacts are varied, and there are some instances of complex GVC-related bilateral trade that contribute to global emission mitigation. A win-win situation for the environment and employment can be achieved in China's bilateral trade with some countries through specific value chain routes. These findings can provide useful information for balancing trade growth, carbon emission reduction, and job creation and may indicate the future direction of China's upgrade in the GVCs and help allocate emission reduction responsibilities.

“Public goods” or “diplomatic tools”: a framing research on Chinese and American media reports regarding Chinese COVID-19 vaccine

This study aims to conduct a framing analysis of Chinese and American media coverage of Chinese COVID-19 vaccine. Since 2021, China exports or donates vaccines to developing countries, arousing the attention of Chinese and American media. The competition between China and the USA over national image extends to the vaccine field. Media framing is a powerful tool to construct a national image. It is worth comparing how Chinese and American media use framings to construct national images on vaccine issues. This study conducts a framing analysis of news coverage in People’s Daily (PD) and The New York Times (NYT) on Chinese COVID-19 vaccine from January to March 2021 to determine how the media use specific framings to construct national images. The results show PD favors official action and cooperation frames, constructing the discourse of “public goods” and “cooperation” and shaping a fair and cooperative China image; while NYT favors official action, conflict and skepticism frames, constructing the discourse of “diplomatic tool” and “competition” and shaping a selfish and competitive China image. A positive image is helpful for China to reposition itself in global public opinion and enhance its soft power, while a negative discourse deconstructs the positive China image and counterbalances China’s vaccine diplomacy.

The Impact of the United States of America and China Export Rate Setting on Wealth and Liquidity of Shareholders

Abstract: Trade war between the United States and China begins when both countries implementing tariffs on imports of products starting in 2017. This study aims to investigate effect of the policy on shareholder prosperity (using variable abnormal returns) and stock liquidity (using variable volume trading activity) in Indonesia Stock Exchange. Data analysis method are using descriptive statistics, normality test and paired sample t-test. The results of this study indicate that export-import tariffs policy of the United States and China on 6 July 2018 do not have significant differences on return and the average trading volume. This indicates that the policy does not contain any information to influence investor decisions in Indonesia Stock Exchange.

Apparel Industry in the EU–China Exports and Circular Economy

Abstract In the current social and economic world context, Chinese trade relations represent a challenge for all partners. The article provides an overview of bilateral trade, especially export, between the European Union (EU) and China in the apparel and accessories industry, most performance parts of the bilateral relations from the textile industry. The research is highlighting the major trends of export relations for this industry during 2001–2019. The author presents the evolution of articles of apparel and accessories exports in the EU and China, emphasizing the major tendencies for each of them. Further are developed benchmarks of Romanian contribution to the relationship between EU and China. The methods used present a multi-method approach, utilizing primary and secondary research through exploratory data from the official website regarding the apparel industry, as EU Statistics, International Trade Centre, and others. The main result of the paper shows that at the European level, one of the most important objectives for the apparel industry is to assure EU–China trade feasible barrier export instruments to develop efficiently the bilateral exports.

The obsolescing bargain crosses the Belt and Road Initiative: renegotiations on BRI projects

Abstract Over the past decade, there has been an extremely rapid increase in bilaterally financed infrastructure projects globally, as part of China’s Belt and Road Initiative (BRI). The BRI is a broad initiative involving many Chinese state-owned enterprises to develop transport and other infrastructure across the developing world, with bilateral financing from either the China Development Bank (CDB) or the China Export–Import Bank (CEXIM). More recently, many large BRI projects have undergone renegotiations with borrower nations or caused financial distress. This provides a useful opportunity to evaluate the BRI through the lens of the obsolescing bargain model. The obsolescing bargain has historically been used to describe the relationship between multinational corporations (MNCs) and the developing countries they invest in. For large capital investments paid off over a long operating period, such as infrastructure projects, the obsolescing bargain describes a shift in leverage from MNCs to the host nation once the capital investment is complete, often leading to renegotiation or even expropriation. This study examines the BRI through the lens of the obsolescing bargain to evaluate the practices of China’s state-owned enterprises (SOEs) and policy banks in mitigating political risk.

Dynamics of export competitiveness of India and China: a study of HS 6-digit manufacturing exports

PurposeThe export competitiveness has only calculated on only two aspects either comparatively advantageous or comparatively disadvantageous products for India or China. There is not any thorough study that has been undertaken for Indian manufacturing sector at a segregated level along with that of China. So, in the light of these shortcomings, the purpose of this study is to analyse the dynamics of export competitiveness of indian manufacturing sector vis-à-vis its emerging counterpart, china in the global market.Design/methodology/approachA modified revealed comparative advantage index has been used in two different phases of 2001–08 and 2010–18 to find the dynamic pattern of manufacturing exports of India and China in the world market.FindingsThe study revealed that India has shown a positive response in increasing its competitive positioned products from low-technology to medium-technology products during the study period. There has been a decline in the competitive positioned products of China and simultaneously China’s threatened product lines have shown an immense increment over the years. Moreover, Indian exports are concentrated to few low-technology and resource-intensive products, that share more than 50% of total exported value for its manufacturing in the global market, whereas, China is much diversified and the exported value is more scattered over its manufactured items.Research limitations/implicationsThe study does not include the factors that impacted the export competitiveness of the sample economies and thus adds a limitation to this study.Originality/valueAs there is very limited research on dynamics of export competitiveness of Indian manufacturing exports at harmonised system 6-digit level with China, this study fulfils the gap.

On COVID-19 pandemic and China's foreign trade.

In this study, we analyse China's foreign trade performance under the global COVID‐19 pandemic using the monthly data in 2019–2021. This paper finds that: (1) China's exports to its major trading partners recover and continue to grow in the second half of 2020 and 2021, after falling significantly in the first half of 2020; (2) the mechanical & electrical and the high‐tech industries have contributed significantly to the recovery of China's exports; (3) the exports of medical products, furniture and appliances show growth in line with the implementation of quarantine policies; (4) the exports of electronic products and electrical vehicles kept growing both before the outbreak and during the pandemic. It is posited that China should continue to expand trade with emerging markets while maintaining a steady trade volume with the developed economies. We also recommend that China focus its future export development on these industries and products that are growing steadily and have greater potential, including the mechanical & electrical industry, the high‐tech industry, electronic products and electrical vehicles.