China's regional trade and investment profile

Power Shift: China and Asia's New Dynamics

Volumn , Issue , 2006, Pages 71-95

  Ohashi, Hideo ^a  

^a SENSHU UNIVERSITY   (Japan)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 69749124127     PISSN: None     EISSN: None     Source Type: Book    
DOI: None     Document Type: Chapter

References (50)

1. World Trade Organization (WTO), "World Merchandise Exports by Region and Selected Economy," available at http://www.wto.org/english/res_e/statis_e/webpub_e.xls.
2. Technically, Luxembourg was reported to be the world's largest FDI recipient in 2002, but this can be explained by a series of cross-border mergers and acquisitions (M&A) that took place to establish the steel group Arcelor. This could also reflect a transfer of funds between affiliates within the same group located in different countries, or a channeling of funds to acquire companies in different countries through a holding company established in Luxembourg to take advantage of favorable intrafirm financing conditions. Consequently, it cannot be assumed that Luxembourg was the world's largest FDI recipient in 2002.
3. United Nations Conference on Trade and Development (UNCTAD), World Investment Report 2003 (Geneva: UNCTAD, 2003), 69.
4. Chugoku Keizai Henshubu [editor of Chugoku Keizai], "Chugoku ni okeru Seisanryo Sekai Daiichii no Seihin Risuto" [The list of the products made in China the largest in the world], Chugoku Keizai [Chinese economy] 446 (2003): 159-64.
5. The flying geese model was originally proposed by Kaname Akamatsu to describe the changing production and trade patterns that the leading industry in a country, after achieving import-substitution, had on other industries. Today, however, the model is widely used to illustrate the international or regional restructuring of industries according to the changing comparative advantage.
6. Kaname Akamatsu, "A Historical Pattern of Economic Growth in Developing Countries," The Developing Economies, Preliminary Issue, no. 1 (1962): 3-25;
7. Ippei Yamazawa et al., "Dynamic Interdependence among the Asia-Pacific Economies," Keizai Bunseki [Economic analysis] 129 (1993).
8. Japan External Trade Organization ( JETRO), Boeki Toshi Hakusho 2003 [White paper on trade and investment 2003] (Tokyo: JETRO, 2003), 11-12.
9. IDE-JETRO has compiled the Asian International I-O Tables of 1975, 1985, 1990, and 1995. These tables cover not only East Asian economies (NIEs, ASEAN 4 countries, and China), but also those of Japan and the United States. After these countries and regions publish their own I-O tables, IDE-JETRO commences analyzing their trade sectors. Consequently, it takes at least five years to compile the final table. The latest IDE-JETRO Asian International I-O Table is that of 1995, published in 2001. The 2000 table is to be published in March 2006.
10. Chiharu Tamamura, Yoko Uchida, Nobuhiro Okamoto, "Ajia Shokoku no Seisan/Juyo Kozo to Boeki Jiyuka: Ajia Kokusai Sangyo Renkan Bunseki" [Production/demand structure and trade liberalization in Asian countries: Asian International Input-Output Analysis], Ajia Keizai [Asian economy] 44, nos. 5-6 (2003): 141.
11. Simon Kuznets, Modern Economic Growth: Rate, Structure, and Spread (New Haven, CT: Yale University Press, 1966), 300-321.
12. Yoko Uchida, "Ajia Shokoku no Izondo" [Dependence on final demands of Asian countries], in Kokusai Sangyo Renkanhyo no Sakusei to Riyo XII [Compilation and utilization of International Input-Output Table XII], ed. Jun Nakamura, Kazuya Tozuka, and Yoko Uchida (Chiba: IDE-JETRO, 2001), 28.
13. Intrafirm trade reached 18.1 percent of U.S. imports from China in 2000. The U.S. retailer Wal-Mart alone imported more than $10 billion worth of Chinese goods in 2001, equivalent to around 10 percent of the total U.S. goods imported from China for that year.
14. U.S.-China Security Review Commission, "The National Security Implications of the Economic Relationship Between the United States and China," July 2002, available at http://www.uscc.gov/anrp02.htm;
15. Richard MacGregor, "Beans Are on the Beijing Menu as Bush Prepares to Talk Trade," Financial Times, February 21, 2002.
16. Subsidiaries of Japanese manufacturers in China exported $7.8 billion of manufactured goods to Japan, accounting for 12.6 percent of Japan's total imports from China in the fiscal year (April to March) of 2001.
17. Keizai Sangyosho (Ministry of Economy, Trade, and Industry), "Dai 32 Kai Heisei 14 Nen Kaigai Jigyo Katsudo Kihon Chousa" [The 32nd 2002 Basic Survey on Overseas Business Activities], June 2003, available at http://www.meti.go.jp/statistics/downloadfiles/h2c403ej.pdf.
18. The ratio seems to be lower than expected, although it is steadily rising. Since Japanese manufacturers of nondurable consumer goods are mostly engaged in processing with Chinese counterparts, machinery takes the leading part in this survey.
19. Processing trade takes the following forms: compensation trade, processing and assembling (lailiao jiagong), processing with imported materials ( jinliao jiagong), and warehousing and bonded trade in exports. In addition to these, two items of equipment for processing trade and equipment/materials investment by FIE are included in processing trade in imports.
20. General Administration of Customs of the People's Republic of China, China's Customs Statistics (Monthly Imports and Exports), no. 160 (December 2002), 14-15.
21. Shangwubu (Ministry of Commerce), "Quanguo Chukou 200 Qiang Qiye" [Top 200 exporting firms in China], available at http://query.fdi.cn/fdifind/Find/CNExpTop200.asp.
22. Intraindustry trade takes the following forms: Trade of manufactured goods at different production stages in the same industry group. Japan exports a number of semifinished semiconductors to Malaysia. Manufacturing plants in Malaysia process and assemble them into finished goods and export them back to Japan. If a manufacturing plant located in Malaysia is a subsidiary of a Japanese manufacturer, this is an intrafirm trade.
23. Trade of manufactured goods produced using different technologies in the same industry group. Japan exports thin steel boards and seamless steel pipes to China and imports rod steel and gauge steel from China.
24. Trade of differentiated merchandize in the same industry group. Japan exports economical compact cars to Europe and imports large luxury cars from Europe.
25. Kokusai Boeki [International trade] no. 1580 (February 18, 2003): 2 and no. 1582 (March 4, 2003): 2.
26. "Overview," in UNCTAD, World Investment Report 2003, 1-11.
27. "Jinshen Kaifang Zhengquan Touzi" [Liberalize securities investment with caution], Jingji Ribao [Economic daily], November 14, 2002, 1.
28. Zhao Jinping, ed., Liyong Waizi yu Zhongguo Jingji Zengzhang [Utilization of foreign capital and economic growth in China] (Beijing: Renmin Chubanshe, 2001);
29. Jiang Xiaojuan, Zhongguo de Waizi Jingji [China's FDI economy] (Beijing: Zhongguo Renmin Daxue Chubanshe, 2002);
30. Hideo Ohashi, Keizai no Kokusaika [Globalization of China's economy] (Nagoya: Nagoya Daigaku Shuppankai, 2003).
31. Karl T. Ulrich and Steven D. Eppinger, Product Design and Development (New York: McGraw-Hill, 2000), 183-84.
32. Arthur W. Lewis, "Economic Development with Unlimited Supplies of Labor," Manchester School of Economic and Social Studies 22 (May 1954): 139-91.
33. Fukunari Kimura, "Kokusai Boeki Riron no Aratana Choryu to Higashi Asia" [New trends in international trade theory and East Asia], Kaihatsu Kinyu Kenkyu Shohou [Japan Bank for International Cooperation Institute review] 14 (2003): 106-16.
34. During the initial stages of FDI in China, cultural and historical affinity was a major determinant of investment, as seen in the cases of Hong Kong's investment in Guangdong, Taiwan's in Fujian, Korea's in Yanbian Korean Autonomous Region, and Japan's in Dalian.
35. "Waiqi Yanfa Zhongxin Qinglai Zhongguo" [Foreign firms' R&D centers favor China], Guoji Shangbao [International business], September 10, 2003, 2.
36. "Zhengfu Ruhe Wei Qiye 'Zouchuqu' Chuangzao Tiaojian" [How the government creates the conditions for the firms to 'go abroad'], Zhongguo Jingji Shibao [China economic times], October 7, 2003, available at http://www.cet.com.cn/20031007/SPECIAL/200310072htm.
37. "Chugoku Kigyo Sekai he: TCL no Shogeki" [Chinese firms going abroad: The impact of TCL], Nihon Keizai Shimbun [Nikkei daily], November 8, 2003, 9.
38. UNCTAD, "Country Fact Sheet: China," available at http://www.unctad.org/Sections/dite_dir/docs/wir03_fs.cn.en.pdf;
39. "Lianheguo Tongji Muqian Zhongguo Duiwai Touzi Cunliang Da 360 Yi Meiyuan" [UN statistics say Chinese outward investment has reached $36 billion], Zhongguo Jingji Xinxi Wang [China economic information network], November 13, 2003, available at http://www1.cei.gov.cn/dailynews/doc/YBQHI/200311130059.htm.
40. In 2001, China was the fourth largest investor in Cambodia, the eleventh in Indonesia, the fourth in Laos, the third in Malaysia, the sixth in Myanmar, the tenth in the Philippines, and the seventh in Thailand.
41. ASEAN-Japan Centre, "Foreign Direct Investment in ASEAN (ASEAN Statistics)," available at http://www.asean.or.jp/general/statistics/Statisticspercent2002/inv09(02).html.
42. UNCTAD's World Investment Report is based on the balance of payments statistics.
43. Tables indicating China's flow of funds appear in Zhongguo Jinrong Nianjian [Almanac of China's finance and banking], Zhongguo Tongji Nianjian [China statistical yearbook], and Zhongguo Renmin Yinhang Tongji Jibao [Quarterly statistics of the People's Bank of China].
44. Hong Kong Bank estimated that round-tripping investment accounted for more than 25 percent of annual FDI flows in China in the mid-1990s.
45. World Bank, Managing Capital Flows in East Asia (Washington, DC: World Bank, 1996), 30.
46. Round-tripping investment is on the decrease, however, as China relaxes the restrictions for capital flows and the preferential policies for FIE become less attractive.
47. Xu Dansong, "'Zouchuqu': Xianzhuang, Wenti ji Duice" ['Going abroad': Present state, problems, and measures], Guoji Jingji Hezuo [International economic cooperation] 196 (April 2002): 12.
48. "Zhongguo Renmin Gongheguo Guomin Jingji he Shehui Fazhan Dishige Wun-ian Jihua Gangyao" [Outline of the Tenth Five-Year Plan for national economic and social development, People's Republic of China], in Zhongguo Jingji Nianjian 2001 [Almanac of China's economy 2001] (Beijing: China Statistics Press), 20.
49. Zhou Xiaochuan, governor of the People's Bank of China, proposed capital exports as well as the expansion of imports to maintain balance of payments and stabilize the exchange rates when U.S. Treasury secretary Snow visited China to call for a more flexible exchange rate system in September 2003.
50. "Zhongguo Shizhong Zai Shixing Fudong Huilu Zhidu" [China's floating exchange rate system in operation all the time], Jingji Cankaobao [Economic information daily], September 4, 2003, 2.