Relocation from China (with Chinese characteristics)

Jason Garred and Song Yuan

Journal of Development Economics, 2025, vol. 176, issue C

Abstract: Rising global political tensions and increasing use of trade policies are popularly seen as potential threats to globalization. Will these factors lead to the ‘decoupling’ of affected economies, or reshape relations between trade partners in more complex ways? We consider this question by studying the recent evolution of the economic relationship between China and the US, in the context of a sharp fall in direct China-US trade. Using firm-level and product-level data, we show that Chinese manufacturing investment and Chinese-produced parts have increasingly flowed to third-country ‘winners’ who have simultaneously increased their US market share. This suggests that Chinese economic actors have continued to participate in reorganized China-US supply chains. We present evidence that our findings capture expanding indirect relationships linking China and the US rather than broader economic trends within the ‘winners’ themselves.

Keywords: China; Trade; FDI; Global supply chains; Relocation; Decoupling (search for similar items in EconPapers)
JEL-codes: F14 F21 O19 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304387825000616
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:176:y:2025:i:c:s0304387825000616

DOI: 10.1016/j.jdeveco.2025.103510

Access Statistics for this article

Journal of Development Economics is currently edited by M. R. Rosenzweig

More articles in Journal of Development Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().