Are the newly industrializing economies rivals for the European union in trading with China?

Limin Wang, Roger Strange and Jian Chen

Asia Pacific Business Review, 1998, vol. 5, issue 1, 29-44

Abstract: The aim of this article is to assess the competitiveness of the EU and the NIEs in trading with, and investing in, China since the early 1980s when China started to participate openly in the world economy. To address this issue, we employ specially constructed bilateral trade figures and data on the structure of trade by technology group. We find that, although the NIEs accounted for a larger proportion of total China trade, their exports to China were mainly low-technology goods. The EU's relatively small share of total China trade was not worsened by the expansion of the NIEs-China trade, and their exports to China were complementary to that from the NIEs and competed with Japan. In addition, the role of Hong Kong in re-export trade and FDI by NIEs in China are important in revealing trade patterns and trends among those regions. Our findings have important policy implications, in particular regarding R&D policies.

Date: 1998
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DOI: 10.1080/13602389912331287913

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