Impact Of European And American Anti-dumping On China’s Participation In Asian Value Chain

In 2017,the United States launched a 301 investigation into China again and announced the imposition of tariffs on steel and aluminum imported from China in March 2018,the Sino-US trade war began.Since then,the United States has imposed additional tariffs on various other imported goods from China,and China has also taken some countermeasures.International production sharing has improved,and trade links between countries have been more complicated.Economic globalization and trade liberalization are the necessary choices and important patterns for each country to improve its own welfare.However,with the gradual increase in international trade,trade frictions between countries have also intensified,disrupting the order of global free trade and hindering the trade process.One of the main reasons for the launch of trade frictions is the imbalance of trade between countries,for example,the United States has been in a huge deficit with China for a long time.China is the second largest economy in the world and one of the important parts of East Asian economy.Therefore,Asia,especially the Southeast Asian countries,are China’s important trading partners.China’s participation in the division of international trade continues to deepen.Therefore,trade frictions initiated by European and American countries against China will also be transmitted and affect China’s trade with Asian countries.On account of the strengthen of the international production sharing,traditional trade indicators are not enough to reflect the real situation of trade.The decomposition of trade based on value added can further reflect the participation of countries in trade,and the global value chains is also based on this theory.This article reviews the theory of international division of production and global value chain theory.Using the data released by the World Input-Output Database in 2016 and the value-added decomposition method of WWZ(2013),this paper analyzes the trade exchanges between China and the major trading partners in Asia,the ways of participating in the division of labor in the value chain and the ways that may be affected by trade frictions.In the empirical part,based on the analysis of trade effect,this paper calculates the position of China’s participation in the Asian regional value chain with the method of Koopman(2014),matches the World Input-Output Database with the World Bank’s temporary trade barrier database(TTBD),analyzes the impact of trade friction on the position of China’s manufacturing industry’s participation in the Asian value chain.It is found that the anti-dumping investigation launched by European and American countries to China does not promote the production share in Asian value chain,but has brought a negative impact on China’s participation.Heterogeneity analysis found that this impact is mainly on capital intensive industries.Then,this paper analyzes the mechanism of this negative effect,and finds that anti-dumping reduces the value-added of domestic indirect exports and increases the value-added of foreign countries,which hinders the industrial upgrading.In order to reduce the damage caused by trade friction,China should strengthen communication and cooperation with the United States and other trade partners,pay attention to our own technological progress and industrial upgrading,achieve win-win results and try our best to maintain the stability of the international trade order.