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Relocation from China (with Chinese Characteristics)

Author

Listed:
  • Garred, Jason

    (University of Ottawa)

  • Yuan, Song

    (Zhejiang University; CAGE, University of Warwick)

Abstract

The share of Chinese goods in US imports has fallen sharply since 2018, as production for the US market has shifted from China to other countries. Does this trend represent US-China ‘decoupling’, or are other US trade partners playing growing roles as intermediaries in ongoing US-China economic relations? Using firm-level and product-level data, we find that Chinese manufacturing investment and Chinese-produced parts have increasingly flowed to third-country ‘winners’ who have simultaneously increased their US market share. We present evidence that our findings capture expanding indirect relationships linking China and the US rather than broader economic trends within the ‘winners’ themselves.

Suggested Citation

  • Garred, Jason & Yuan, Song, 2024. "Relocation from China (with Chinese Characteristics)," CAGE Online Working Paper Series 702, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:702
    as

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    File URL: https://warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/wp702.2024.pdf
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    References listed on IDEAS

    as
    1. Benguria, Felipe & Choi, Jaerim & Swenson, Deborah L. & Xu, Mingzhi (Jimmy), 2022. "Anxiety or pain? The impact of tariffs and uncertainty on Chinese firms in the trade war," Journal of International Economics, Elsevier, vol. 137(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Trade; China; FDI; global supply chains; relocation; decoupling JEL Classification: F14; F21; F23;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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