Overview of U.S.-China Trade in Advanced Technology Products

Journal of International Commerce and Economics (2011)

16 Pages Posted: 18 Apr 2019

See all articles by Alexander B. Hammer

Alexander B. Hammer

U.S. International Trade Commission

Robert B. Koopman

World Trade Organization (WTO) - Economic Research and Analysis Division

Andrew B. Martinez

U.S. Department of the Treasury, Office of Macroeconomic Analysis; George Washington University - Research Program on Forecasting

Date Written: May 2011

Abstract

This volume presents a series of papers prepared by U.S. and Chinese researchers examining the development of trade between the United States and China in advanced technology products (ATPs) at the Joint Symposium on U.S.-China Advanced Technology Trade and Industrial Development, October 23-24, 2009, in Beijing, China. The symposium was organized by the United States International Trade Commission, the School of Public Policy and Management at Tsinghua University, the Institute for International Economic Research at the National Development and Reform Commission, and the Brookings-Tsinghua Center for Public Policy at Tsinghua University. The goal of the research efforts presented at the symposium was to better understand the factors affecting U.S.-China ATP trade and the rapid growth of China as a platform for ATP production and trade.

ATP trade has been a fast-growing segment of U.S.-China bilateral trade relations. This topic is of great interest, given that the United States, an advanced economy, likely has a comparative advantage in ATPs and is well known for its high levels of innovation and advanced research, as illustrated through its leadership position in global patenting. China, on the other hand, is a fast-growing developing country that has used export-led growth as a major part of its development strategy. China has particularly encouraged large amounts of foreign direct investment (FDI) in export processing zones in an effort to encourage technological spillovers. Based on its export volumes China’s strategy has led to an incongruous result: China exports extraordinary large levels of ATP products to the United States relative to its level of development. Research by Dani Rodrik and others has found that the technological sophistication of China’s exports more closely resemble those of a developed country than those of a typical developing country, such as Brazil or India. However, research on supply and value chain linkages by Koopman, Wang, and Wei (2008) and Dedrick, Kraemer, and Linden (2008), among others, clearly illustrates that much of the content and value of China’s ATP exports originates in third countries such as the United States, Japan, several countries of the European Union (EU), and South Korea, and historically has been exported from foreign-invested enterprises in China’s export processing zones.

The papers in this volume cover a wide range of topics and perspectives related to U.S.-China ATP trade, from microfocused papers centered on industry- or product-specific case studies to a discussion of a broad international trade agreement and an assessment of macroeconomic financial flows. Despite this diversity of topics, consistent themes include the importance of the fragmentation of the value chain across Asia and the proactive role of Chinese government efforts supporting ATP-related investment and production. In this introduction, we will first survey these papers, then provide an overview of U.S.-China ATP trade in order to supply a fuller context for understanding the papers’ findings.

Keywords: China, United States, Advanced Technology Products, ATP, Exports

JEL Classification: F00, F1, 03, 04, 053

Suggested Citation

Hammer, Alexander B. and Koopman, Robert B. and Martinez, Andrew B., Overview of U.S.-China Trade in Advanced Technology Products (May 2011). Journal of International Commerce and Economics (2011), Available at SSRN: https://ssrn.com/abstract=3371280

Alexander B. Hammer

U.S. International Trade Commission ( email )

500 E Street SW
Washington, DC 20436
United States
(202) 205-3271 (Phone)

Robert B. Koopman (Contact Author)

World Trade Organization (WTO) - Economic Research and Analysis Division ( email )

Rue de Lausanne 154
CH-1211 Geneva
Switzerland

Andrew B. Martinez

U.S. Department of the Treasury, Office of Macroeconomic Analysis ( email )

1500 Pennsylvania Avenue, NW
Washington, DC 20220
United States

George Washington University - Research Program on Forecasting ( email )

1922 F Street, NW
Old Main, Suite 208
Washington, DC 20052
United States

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