著者

XING Yuqing

出版者

GRIPS Policy Research Center

雑誌

GRIPS Discussion Papers

巻号頁・発行日

vol.19-14, 2019-08

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Global Value chains (GVC) provide a new channel of innovation for firms participating in value chains or utilizing the value chain strategy to grow. Upgrading to high value added segments of GVCs step by step is a linear model of innovation. Our analysis on the Chinese firms involved in the value chain of the iPhone shows that the Chinese mobile industry has climbed up ladders of the iPhone value chain and performed relatively sophisticated tasks beyond simple assembly. In addition, by examining foreign value added and technology embedded in the smartphones of OPPO, Xiaomi and Huawei, we argue the Chinese smartphone vendors primarily follow a non-linear model of innovation, jumping directly to brand development before acquiring sufficient technology capacity. They have been focusing on incremental innovations and product differentiation by taking advantage of available technology platforms. The value chain strategy enabled them to overcome technology deficiency effectively and opened a short-cut to catch-up foreign rivals and evolve into leading smartphone makers in both domestic and foreign markets.

著者

XING Yuqing HE Yuzhen

出版者

GRIPS Policy Research Center

雑誌

GRIPS Discussion Papers

巻号頁・発行日

vol.18-09, 2018-09

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In this paper, we evaluate the domestic value added of Chinese brand mobile phones using the teardown data of two sample phones: Xiaomi MIX 2 and OPPO R11s. For calculation of the distribution of value added by country, we adopt two benchmarks: production cost and retail price. In terms of the production cost of the sample phones, which consists of bill of materials, manufacturing cost and royalty, Chinese domestic value added embedded in the MIX 2 is 15.4% and 16.7% in the R11s. The teardown analysis reveals that no indigenous Chinese firms are involved in the manufacture of the printed circuit board assembly, which explains the relatively low Chinese domestic value added. Using retail price to measure total value added, we find that the domestic value added of the MIX 2 to be 41.7% while that of the R11s to be 45.3%. The cost of retail services and gross marginal profits contribute most to the increase, which implies that nurturing mobile phone brands has not only enabled the Chinese mobile phone industry to move up ladder of value chains, but also to improve domestic value added.

著者

XING Yuqing

出版者

GRIPS Policy Research Center

雑誌

GRIPS Discussion Papers

巻号頁・発行日

vol.15-06, 2015-05

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This paper argues that global value chains (GVCs) have functioned as a vehicle for “Made in China” products to enter international markets, especially the markets of high income countries. It identifies three spillover effects to Chinese firms participating in GVCs: brands, distribution networks and lead firms’ technology innovations. By participating in GVCs, Chinese firms are able to bundle low skilled labor services with advanced technologies and globally recognized brands, and then sell their low value added services to the consumers of international markets. The competitiveness of China’s processing exports is largely determined by more than 50% of foreign contents embedded in the exports. Using the panel data of bilateral processing exports covering more than 100 China’s trade partners, it shows there exists a significantly positive correlation between the share of processing exports and the income of trading partners, implying that processing trade is an effective means for “Made in China” products to enter high income countries. The cross-country heterogeneity of processing exports also indicates China captures relatively more value added in its exports to low income countries than to high income countries.

著者

XING Yuqing 政策研究大学院大学 / National Graduate Institute for Policy Studies

出版者

GRIPS Policy Research Center

雑誌

GRIPS Discussion Papers

巻号頁・発行日

vol.22-12, 2023-03

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Chinese processing exports use imported intermediates more intensively than its ordinary exports. The share of processing exports in the Chinese exports to high income countries is much higher than that to low income ones. That heterogeneity suggests that the domestic value added of Chinese processing exports differs from that of the ordinary exports, and the domestic value added of Chinese bilateral exports should vary across its trading partners. In this study I estimate the domestic value added of Chinese processing exports, ordinary exports, total exports and bilateral exports to 150 countries from 2004 to 2018, giving consideration to the heterogeneity. The estimates indicate that the domestic value added of processing exports was 30.1% in 2004, about 55 percentage points lower than that of ordinary exports. From 2004 to 2018, the domestic value added of total Chinese exports rose from 54.5% to 63.7%. However, the significant disparity in the domestic value added between processing and ordinary exports was persistent during the period. The domestic value added of Chinese exports also varied significantly across 150 trading partners. In 2004, it ranged from 39.5% to 84.1%. Generally, Chinese exports to developing countries were embedded with higher domestic value added than that to developed countries. Compared with the Chinese domestic value added reported by the OECD TiVA, the estimates of this study are 20 percentage lower on average.

著者

XING Yuqing

出版者

GRIPS Policy Research Center

雑誌

GRIPS Discussion Papers

巻号頁・発行日

vol.19-01, 2019-04

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Many American multinational corporations (MNCs) have turned into factory-less. They outsource the production of their products to foreign companies and derive the largest share of their revenue from the intellectual property of core technologies and brand names. When factory-less American MNCs sell their products assembled by foreign contract manufacturers in overseas markets, they actually “export” the value added attributed to their intellectual property embedded in those physical goods. However, conventional trade statistics are compiled based on the value of goods crossing national borders, as declared to customs. The value added of the intellectual property is generally not recorded as part of US exports. We use Apple, a typical factory-less American company that employs exclusively foreign contact manufacturers to assembly its products, as a case to illustrate why and how conventional trade statistics underestimate actual US exports in the age of global value chains. According to our analysis of this case, if the value added of Apple intellectual property sold to foreign consumers was counted as part of US exports, total US exports in 2015 would increase by 3.4%, and its trade deficit would decrease by 7.0%. In terms of bilateral trade, the value added under examination here would raise the US exports to China and Japan by 16.6% and 8.6% respectively, and lower its trade deficit with the two countries by 5.2% and 7.8% accordingly.

著者

XING Yuqing ZHANG Bo

出版者

GRIPS Policy Research Center

雑誌

GRIPS Discussion Papers

巻号頁・発行日

vol.18-10, 2018-09

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This paper analyzes how the technology progress of the South country affects the welfare of the North country in a free trade world. Using the standard Ricardian model of the North-South trade, we show that, import biased technological progress of the South will undermine the welfare of the North, once the cumulative technological progress of the South exceeds a threshold. The relative population size of the South to North affects the threshold. Generally, a relatively larger South country has a lower threshold and the technological difference between the two countries remains even beyond the threshold. To a certain extent, the findings of the paper offer an theoretical explanation about the concerns of rising China in an integrated world economy.

著者

XING Yuqing

出版者

GRIPS Policy Research Center

雑誌

GRIPS Discussion Papers

巻号頁・発行日

vol.17-06, 2017-08

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More and more American multinational corporations (MNCs) are outsourcing the production and assembly of their products to foreign companies. When they do so, they derive the largest share of their revenue from the intellectual property embedded in core technological innovation and brand names. However, conventional trade statistics are compiled based on the value of goods crossing national borders, as declared to customs. Generally, the value added associated with intellectual property rights and embedded in physical goods is not recorded as either export or import of any country. Hence, current trade statistics greatly underestimate US exports and substantially exaggerate its trade deficit. In this paper, we use the case of Apple, the largest American consumer products company, to illustrate the failure of conventional trade statistics to report actual US export capacity in the age of global value chains. According to our analysis of this case, if the value added of Apple intellectual property sold to foreign consumers were counted as part of US exports, total US exports would increase by 3.7%, and its trade deficit would decrease by 7.5%. In terms of bilateral trade, the value added under examination here would lower the US trade deficit with the Greater China region by 6.7% and that with Japan by 9.1%.

著者

XING Yuqing

出版者

GRIPS Policy Research Center

雑誌

GRIPS Discussion Papers

巻号頁・発行日

vol.16-01, 2016-04

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This study investigates the impacts of rising wages and the appreciation of the yuan on the structure of China’s exports. China’s exports are classified here as ordinary exports (OE) and two distinctive groups of processing exports, pure assembly exports (PAE) and mixed assembly exports (MAE). The data analyzed here are derived from panel data covering China’s bilateral PAE and MAE trade with more than 100 trading partners from 1993 to 2013. Estimates of fixed effect models show that wage increases and the appreciation of the yuan reduced the proportion of assembly exports in China’s bilateral exports. Specifically, for a 1% increase in Chinese manufacturing wages, the share of PAE in China’s bilateral exports is expected to fall 1.6 percentage points and that of MAE to decrease by 1.1 percentage points; a 1% nominal appreciation of the yuan against the US dollar would be expected to lower PAE and MAE trade volume by 2.4 and 2.1 percentage points, respectively. The empirical results imply that rising wages and cumulative appreciation of the yuan have eroded China’s comparative advantage in the assembly of products for international markets, resulting in substantial contraction of processing exports. The analysis provides a supply-side explanation for the fall of China’s export growth.

著者

XING Yuqing

出版者

GRIPS Policy Research Center

雑誌

GRIPS Discussion Papers

巻号頁・発行日

vol.19-21, 2019-10

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Through an examination of the case of the iPhone X, this paper demonstrates that Chinese companies involved in production of the iPhone X have moved up the value chain. According to the bill of materials, those companies contributed 25% of the value added of the iPhone X. About 45% of the value added of the iPhone X originated from Japan, Korean and other economies. The iPhone trade remains a significant element of the statistics distortion of the Sino-US bilateral trade imbalance. In terms of gross value, the import of one iPhone X results in a $332.75 trade deficit for the US; measured in terms of value added, the deficit is a mere $104. Depreciation of the yuan has very limited power to counterbalance the tariffs imposed by the Trump administration because foreign value added embedded in Chinese exports is 33.9% on average. Simulation results show that to counterbalance a 25% tariff, the yuan would have to depreciate by 43.3% against the US dollar on average; and to fully compensate for a 25% tariff burden on the iPhone X, a 400% depreciation of the yuan would be necessary. Hedging the risk of the punitive US tariffs by depreciation of the yuan is mission impossible.

著者

XING Yuqing

出版者

GRIPS Policy Research Center

雑誌

GRIPS Discussion Papers

巻号頁・発行日

vol.18-17, 2018-11

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This paper provides a comprehensive analysis of the on-going China-US trade war, similar to the Thucydides Trap in terms of competing for global economic dominance. It analyzes what the US attempts to achieve through the trade war and why China has been refusing the reciprocal trade relations urged by President Trump. It also identifies social and economic changes in American society, which motivate President Trump to impose punitive tariffs on Chinese goods. It emphasizes that the trade war is asymmetric and China will definitely suffer more losses than the US if the trade war escalates further. At the end of the paper, it suggests that, to avoid the devastating result of the Thucydides Trap, China should further open its domestic market to American companies and actively pursue negotiations with the US for resolving the dispute.

著者

XING Yuqing

出版者

GRIPS Policy Research Center

雑誌

GRIPS Discussion Papers

巻号頁・発行日

vol.16-07, 2016-06

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This paper argues that global value chains (GVCs) have transformed bilateral trade relations into multilateral and value added approach is needed to accurately measure the contribution of trade to economic growth and bilateral trade balances. Under GVCs, the impact of exchange rates on bilateral trade balances have been weakened and technological innovations may not necessarily increase domestic employment. The challenges associated with the emergence of GVCs require an in-depth understanding of modern international trade, which in turn calls for new modes of thinking and new theories. For developing countries, focusing on specific segments of GVCs and upgrading industrial capacity along value chains could be an alternative path of industrialization.

著者

Xing Yuqing

出版者

国際大学

雑誌

Economic development & policy series

巻号頁・発行日

vol.6, pp.1-17, 2006-06

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Former Title : Economic development & policy seriesFormer No. : EDP06-08This paper examines the FDI and exchange rates nexus in the context of one FDI source and two host countries. It focuses on the effect of exchange rates on the relative FDI inflows between the two host countries. The theoretical analysis shows explicitly that the relative FDI inflows are a function of the relative real exchange rate. In particular, if one host country devalues its currency against that of the source country more than the other does, FDI into the country will be expected to increase relatively while FDI into the other decrease. The theoretical inference is examined with Japanese FDI in China and ASEAN-4 (Indonesia, Malaysia, the Philippines and Thailand). The empirical results generally support the theoretical conclusion, suggesting that the real devaluation of the Chinese Yuan undercut FDI into the ASEAN-4.