“Japan Economic News” published a report on “China is becoming a high value-added products and parts export base” on March 13, saying that the Japanese Cabinet Office pointed out in the “World Economic Trends” report on the world economic trend on the 12th. China is becoming an export base for high value-added products and parts such as production machinery.
The report said that the Cabinet Office used the data of the United Nations to summarize the structural changes in China’s foreign trade industry. In the past, China played the role of importing high value-added parts, manufacturing domestically into consumer products, and then exporting “world assembly plants”. In this process, China has acquired the technology of manufacturing high-quality parts and other intermediate products, production machinery and other capital products, and gradually realized domestic manufacturing.
According to the report, in 2016, the proportion of intermediate products in China’s exports reached 41.1%, and capital products also reached 31.2%, both of which increased by more than 10 percentage points over 2000. On the other hand, the proportion of consumer products reached 27.0% in 2016, down 21% from 2000. It can be seen that China is transforming itself from producing and exporting textiles, toys and assembled products into large countries that produce and export high-value-added products such as electrical products, high-quality parts and production machinery.
According to the report, from the perspective of the proportion of domestic value added in export commodities, China’s 2018 is 87.1%, which is higher than the US’s 86.7%. Japan is only 79.4%.
According to the report, in the field of electrical equipment, high value-added parts produced and exported by China are indispensable for the US manufacturing industry. The added value of overseas production parts in US exports reached approximately 13% in 2018. Among them, China’s production of parts and components accounted for 12%, the proportion is much higher than the 4.9% in 2000. Japan’s share fell from 13.6% in 2000 to 5.6%.