Analysis Of China And America Trade Imbalance Of Electrical And Optical Equipment Manufacturing Industry Based On Global Value Chain

For a long time,there has been a huge trade deficit between China and the United States.Since 2009,the bilateral trade balance of electrical and optical equipment manufacturing industry has accounted for more than 40%of the total trade deficit between two countries.An in-depth analysis of the bilateral trade imbalance in electrical and optical equipment manufacturing industry is of great practical significance for revealing the real trade situation between China and the United States.The rise of global value chain theory system provides a new research framework for re-examining bilateral trade.In view of this,this paper uses WIOD database 2000-2014 inter-country input-output table to carry out research from the following aspects,based on the theory of global value chain and value-added trade.Firstly,through the WWYZ production chain length accounting system,this paper describes the production activities of electrical and optical equipment manufacturing industry in China and the United States as well as their participation situation in the global value chain.It is found that China and the United States have become major producers of electrical and optical equipment in the world.The production activities of China’s electrical and optical equipment manufacturing industry are dominated by the traditional export trade of final products,while the industrial output value and final products of the United States are more involved in the closed-loop activities of domestic production and consumption.In the part of global value chain,the sources and destinations of domestic and foreign value added invested and absorbed by China and the United States through global value chain production activities are mainly concentrated in the countries with geographic advantages or some of the traditional electrical and optical equipment manufacturing powers.In addition,the GVC(Global Value Chain)participation and production length of China’s electrical and optical equipment manufacturing industry are higher than those of the United States,and mainly in backward participation.The position index of GVC production in both countries is relatively low,but the reasons for its formation are different.Secondly,through the WWZ total trade accounting method,this paper decomposes the value-added of bilateral trade between China and the United States in electrical and optical equipment manufacturing industry from the aspects of trade scale,product structure,industrial linkage and country structure.The result shows that Sino-US bilateral trade imbalance in electrical and optical equipment manufacturing industry has been exaggerated under the traditional trade statistics model.Although China does have a trade surplus with the United States,its profitability in bilateral trade is weaker than that of the United States,manifested in:China’s domestic value-added share in bilateral exports is lower than that of the United States,and its exports to the United States are mainly final products;despite the increasing production capacity of industrial intermediaries,China’s position in the global value chain is still lower than that of the United States.The degree of electronic information and service-oriented in American industry is relatively higher,while at the same time,the service input in China’s electrical and optical equipment exports is also increasing year by year.The major trading partners in Sino-US bilateral trade network of electrical and optical equipment are relatively stable.Mexico’s importance is increasing,while Japan’s position is declining.Finally,based on the above research,this paper puts forward countermeasures and suggestions to promote China’s electrical and optical equipment manufacturing industry to climb up the global value chain,including enhancing the ability of independent innovation,promoting the deep integration of industries,getting rid of the low-end lock-in dilemma,and building regional value chain.