Vol. 6 Num. 1 - GCG: Revista de GlobalizaciÃ³n, Competitividad y ...

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Edy WongTable One: Compositions of China’s Exports, 1980 - 2008 (100 million RMB)139Components of Manufactured ExportsYear Total Primary Manufactured Chemicals Light textilesMachine and transportequipment1980 181.19 50% 50% 12% 44% 9%1985 273.50 51% 49% 10% 33% 6%1990 620.91 26% 74% 8% 27% 12%1995 1487.80 14% 86% 7% 25% 25%1996 1510.48 15% 85% 7% 22% 27%1997 1827.92 13% 87% 6% 22% 28%1998 1837.09 11% 89% 6% 20% 31%1999 1949.31 10% 90% 6% 19% 34%2000 2492.03 10% 90% 5% 19% 37%2001 2660.98 10% 90% 6% 18% 40%2002 3255.96 9% 91% 5% 18% 43%2003 4382.28 8% 92% 5% 17% 47%2004 5933.26 7% 93% 5% 18% 49%2005 7619.53 6% 94% 5% 18% 49%2006 9689.36 5% 95% 5% 19% 50%2007 12177.76 5% 95% 5% 19% 50%2008 14306.93 5% 95% 6% 19% 50%Source: China Statistical Yearbook, 2005, 2006, and 2009.One consequence of China’s move up the value chain has been its manufacturing trade surpluseswith the US and EU. Indeed, China is now the largest exporter of manufactured goodsto the US, and the EU is China’s largest manufacturing export market since 2008. Growthin the machinery and transport sectors has consistently outpaced other export categoriesduring the past five years. An important element of China’s trade surplus with the US hasbeen its rising exports of Advanced Technology Products (ATP) to the US. By one estimate,the US’ “ATP deficits with China account for more than the total US losses and are also largerthan the total global surplus in Intellectual Property royalties and fees of all US-incorporatedfirms. ...The number of distinct ATP in which US-based producers enjoy a surplus with Chinadeclined from 287 in 2001 to 225 in 2008; the number of Chinese-produced ATP with surplusesincreased from 312 in 2001 to 328 in 2008” (Cui and Syed. 2007). Leading this growthin China’s ATP exports is its leading telecommunications equipment maker Huawei TechnologiesCo. Ltd. (hereafter Huawei). This company has developed an international presenceand has seen its foreign contracts increase from $244 million in 2001 to $4.8 billion in 2008.Today, Huawei has 37,000 employees in 40 countries, 18,000 of whom are involved in R&D(Miller, 2006b). More importantly, Huawei is the recipient of the 2010 Corporate Use of InnovationAward from The Economist (Financial Express, 2010), attesting to the rising sophisticationand competitiveness of Chinese firms in the telecommunications sector. However,notwithstanding the growing competitiveness of Chinese high technology firms, much of theexports of technology goods from China have remained the domain of foreign companies,GCG GEORGETOWN UNIVERSITY - UNIVERSIA ENERO-ABRIL 2012 VOL. 6 NUM. 1 ISSN: 1988-7116pp: 136-155
China’s Move up the Value Chain. A Framework for Analysis140who account for 85 percent of China’s high technology exports and the bulk of its high technologyproduction in 2008 (Hout and Ghemawat .P.97).At home, China’s move up the value chain is seen in the greater production of intermediateinput and upgrading of existing product lines. Examples of such movements include productionof higher value textile products such as synthetic fibre operating rate, polyesterstaple fibre (PSF), and textile chemicals 3 ; industrial machinery and equipment; marine andshipping equipment; transport equipment and automobiles; and consumer appliances. Thismovement toward more sophisticated products has seen Haier, a major white goods producer,and various motorcycle producers in China capturing an increasing share of the worldmarket as well. Concomitant to an upgrade of existing product lines, Chinese firms havealso entered into new areas of production such as aircrafts, high speed rails, aerospaceequipment, pharmaceutical products, etc. While many of these sophisticated products arecurrently produced only for the domestic market, they are indicative of China’s ambitions fora leading position in the global value chain.3. Value Chain Upgrade as a Development PolicyDespite many improvements in its technological capabilities, China must do more to escapethe role of a low margin producer in the global economy. China must overcome the technologicalgap with foreign producers if it is to become a producer of high technology products.Such a gap exists even in areas that China has aggressively pursued at home, such as aviation,computer software, wind energy, and rail technologies (Hout and Ghemawat. p.98). Tomove up the value chain, fostering domestic innovation has been and will remain a key policygoal of the Chinese government. The recent re-statement of a target R&D-to-GDP ratioof 2.2 percent in China’s 12th Five-Year Plan is simply a continuation of its innovations policyover the past decade. China’s aggressive promotion and support for R&D activities throughvarious channels such as government-sponsored science parks, university and corporateresearch, and foreign direct investment programs have led to a burst of R&D spending inChina.3. ICB (2009) “China textile chemicals move up the value chain: the long march”, August 24, 2009.GCG GEORGETOWN UNIVERSITY - UNIVERSIA ENERO-ABRIL 2012 VOL. 6 NUM. 1 ISSN: 1988-7116pp: 136-155
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CARTA DEL EDITOR IN CHIEFEditor in
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StaffDe la Torre, José, Dean, Chap
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Staff2. MULTINACIONALES, INVERSIÓN
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SELECCIÓN PROCEDURE PROCEDIMENTOIN
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Instrucciones para Autores y Proced
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INDEXACIÓN INDEXING INDEXAÇÃOInd
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Economic Relationships between Lati
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Miguel A. MontoyaThe rest of the pa
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561. IntroductionClusters and indus
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Entrepreneurial Clusters in China a
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Page 140 and 141: Edy WongTable 2: China’s R & D Ex
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Page 144 and 145: Edy WongIn today’s global market,
Page 146 and 147: Edy Wongdemand-side factors in the
Page 148 and 149: Edy Wongterms of quality, reliabili
Page 150 and 151: Edy Wongindustry. Second, value cha
Page 152 and 153: Edy Wongconsumption of Western luxu
Page 154: Edy WongReferences155Child, J.; Rod
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Vol. 6 Num. 1 - GCG: Revista de GlobalizaciÃ³n, Competitividad y ...

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