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我院杨立强副研究员在《中国日报》发表“Pillar of regional production”文章

作者:国际经济研究院  来源:中国日报国际版  发布日期:2019-09-05

   2019年8月19国际经济研究院杨立强副研究员在《中国日报(China Daily)》发表题为“Pillar of regional production”文章,就中国加工贸易发展发表了自己的观点。文章全文如下:

 

Pillar of regional production

 

By Yang Liqiang | China Daily Global | Updated: 2019-08-19 08:17

 

China's processing trade, which is now deeply integrated into East Asia's value chains, still shows vigorous development

In the 70 years since the foundation of the People's Republic of China, especially during the past 40 years of reform and opening-up, foreign trade, in particular the processing trade, has made important contributions to China's rapid economic development. The contribution the processing trade has made to China's development should not be underestimated.

The total value created by exports of China's processing trade in 2018 was $797 billion and these accounted for 32 percent of China's total exports that year. The total value of imports reached $470 billion, 22 percent of China's total imports. A trade surplus of $327 billion was achieved.

However, with the increasing uncertainties in the global economy and China's pursuit of industrial upgrading, should it vigorously develop the processing trade? Despite the challenges, there are reasons why China should still develop its processing trade.

First, the processing trade and export processing industry have attracted a large amount of foreign investment and they provide a large number of employment opportunities in China. According to statistics from the Customs Administration, the import and export volume of the processing trade of foreign-invested enterprises reached $1,031 billion in 2018, accounting for 81 percent of the total import and export value of the processing trade.

Data also show that the processing trade, with foreign-invested enterprises as the main body, provides jobs for about 30 million people in China. In the general context of the uncertain prospects for the development of the world economy, the processing trade, which can attract foreign investment and alleviate the pressure of employment to some extent, becomes especially important.

Second, the large-scale production and manufacturing capacity created by the development of the processing trade in the past 40 years has become an important advantage for China's manufacturing industry and foreign trade.

According to statistics, the mechanical and electrical products exported by means of the processing trade in 2016 amounted to $561 billion, accounting for 79 percent of the total exports of processing trade, and the high-tech products exported by means of imported materials processing amounted to $347 billion, accounting for 49 percent of the total exports of the processing trade. Undoubtedly, the "Made in China" label that has amazed the world cannot be separated from the development of the processing trade over the past 40 years.

Finally, the processing trade is an essential arrangement for the formation and development of East Asia's production network and regional value chain.

One of the core features of cross-border production networks and value chains is the cross-border flow of intermediate products such as raw materials and components.

In order to run efficiently, a regional production network needs to eliminate the import tariff barriers faced by the cross-border flows of intermediate products, and realize the zero-tariff cross-border flows of intermediate products. Major economies in the East and South-East Asia have formed a very unique regional zero-tariff flow network for intermediate products by means of bonded areas, export processing zones, free ports, free trade zones and the like that have supported the production networks and value chains throughout the entire region.

So far, China has been deeply involved and integrated into the East Asia's production networks, and become its core component after developing for over 40 years. Therefore, the processing trade, as a pillar of the whole regional production network system, still shows vigorous development although it needs system improvement.

Over the past 70 years since the founding of New China, foreign trade has developed from the initial "mutual exchange of needed products" to active participation in, and integration into, the East Asia's production networks by means of the processing trade. And the process trade has made important contributions to the rapid development of China's economy.

Looking into the future, driven by the flourishing development of China's domestic consumer market, the processing trade and regional production networks are adjusting and reconstructing rapidly, and will promote the further development of economic globalization.

The author is an associate professor at Institute of International Economy of University of International Business and Economics. The author contributed this article to China Watch exclusively. The views expressed do not necessarily reflect those of China Watch. All rights reserved. Copying or sharing of any content for other than personal use is prohibited without prior written permission.

 

(China Daily Global 08/19/2019 page13)

 

文章链接见http://www.chinadaily.com.cn/global/2019-08/19/content_37503041.htm.