|
on China |
| By: | Trang T. Hoang; Gordon Lewis |
| Abstract: | China's share of U.S. goods imports has fallen significantly since 2017 following the U.S.-China tariff hikes and other geopolitical tensions. Even though the U.S. has reduced its direct sourcing from China, other foreign suppliers of U.S. imported goods have increased their reliance on imports from China. |
| Date: | 2024–08–02 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfn:2024-08-02-4 |
| By: | Cho, Eun Kyo (Korea Institute for Industrial Economics and Trade); Shim, Woojung (Korea Institute for Industrial Economics and Trade) |
| Abstract: | As trade tensions between the US and China ratchet up and spur a wholesale transformation of global supply chains, structural changes to the trade relationship between South Korea and China have become inevitable. This is likely to be most pronounced in high-tech industries, such as semiconductors, batteries, and pharmaceuticals, where there is already a well-established cross-border division of labor. In this paper, we analyze the structure of Korea-China supply chains with respect to the three high-tech industries listed above. We find that Korean semiconductor, battery, and pharmaceutical companies all rely heavily on China for materials. Korean firms source key intermediates and parts and use China as a base for entering other countries, and together these factors constitute the primary driving force underpinning Korea’s high dependency on Chinese suppliers. In this paper, we argue that Korean industries need to internalize and diversify their supply chains to reduce their dependency on Chinese materials while also seeking out new models of cooperation to capitalize on Chinese infrastructure, technology, and markets as well as Chinese companies’ growing interest in using Korea as a production base. |
| Keywords: | semiconductors; batteries; supply chains; Korea-China supply chains; high-tech supply chains; high-tech industry; pharmaceuticals; supply chain diversification; IRA; battery policy; industrial policy; semiconductor policy; Korea; KIET |
| JEL: | F13 F15 F21 F23 F51 F52 |
| Date: | 2024–03–29 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kietrp:2024_005 |
| By: | Liu, Mengyu; Zhou, Xiong; Huang, Guohe; Li, Yongping |
| Abstract: | The sustainable development of China has been challenged by the misalignment of water demand and supply across regions under varying climate change scenarios. Here we develop a water stress prediction index using a fuzzy decision-making approach, which analyzes spatiotemporal variations of water stress and concomitant effects on the populace within China. Our results indicate that water stress will increase from 2020 to 2099 under both low and high emission scenarios, primarily due to decreased water supplies like surface runoff and snow water content. Seasonal analysis reveals that annual fluctuations in water stress are mainly driven by changes in spring and autumn. Water stress is projected to be considerably lower in southeastern provinces compared to northwestern ones, where, on average, over 20% of the Chinese population could be severely impacted. These changes in water stress could lead to the north-to-south migration of the agriculture sector, manufacturing sector, and human population. |
| JEL: | R14 J01 |
| Date: | 2024–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124431 |
| By: | Wen, Xin; Cheng, Zhiming; Tani, Massimiliano |
| Abstract: | We explore the link between child gender and household financial decisions within a cultural environment that strongly favours having a son. Using data from the China Household Finance Survey (CHFS), we find that the presence of a daughter is associated with a lower saving rate, consistent with the hypothesis that the relative under-supply of unmarried women generates a less competitive marriage market for families with daughters vs. those with sons. As a result, such families have lower incentives to endow their daughters with bigger asset pools to enhance their marital prospects. The correlation becomes more pronounced as the daughter approaches marriageable age, and it is more common among families where the head has low financial literacy and limited education and lives in rural areas. |
| Keywords: | daughter, household investment decisions, family savings, marriage market |
| JEL: | D14 G11 G51 J12 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1474 |
| By: | Luo , Wei (Jinan University); Huang, Wei (Peking University); Park, Albert (Asian Development Bank) |
| Abstract: | We study the influence of social norms in determining the impact of early life exposure to the Great Chinese Famine of 1959–1961 on gender inequality. We model how social norms interact with adverse shocks to affect male and female survival chances and influence subsequent human capital investments. We test these predictions empirically by using the Fifth National Population Census of the People’s Republic of China in 2000 that has information on birthplace and estimate a difference-in-differences model that combines cohort and regional variation in exposure to the famine with regional variation in the culture of son preference. We find that son preference buffers the negative impact of intrauterine famine shocks on cohort male-to-female sex ratios and reduces famine’s impact on gender inequality in health and education. |
| Keywords: | famine; son preference; sex ratios; human capital investment |
| JEL: | I24 I26 J13 J16 |
| Date: | 2024–08–16 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:0738 |
| By: | Hanxin Zhao |
| Abstract: | This paper discusses the adoption of a green ammonia economy in meeting challenges in China's sustainable development. First, key challenges in China's energy transition, industry decarbonziation and regional sustainable development are explored. The coal-dominated energy consumption has placed great obstacles in achieving energy transition and led to massive CO2 emission since the large-scale industrialization. The high dependency on oil and gas import has threatened the energy security. A DEA model is applied for obtaining green total factor productivities of China's six administrative regions, with which, imbalanced and unsustainable regional development is identified. Second, the role of green ammonia in meeting the sustainability challenges is analysed. Ammonia is examined to be a flexible and economic option for large-scale hydrogen transport and storage. Co-firing ammonia in coal power generation at 3% rate is evaluated as an option for achieving low-carbon transition by 2030. The adoption of a green ammonia economy in China is discussed from energy, environmental and economic aspects. The practice can decline fossil energy consumption, enhance energy security, and facilitate renewable energy delivery and storage, industry decarbonization, and regional development. We assume the findings and results contribute to addressing sustainability challenges and realizing a hydrogen economy in China. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.07632 |
| By: | Yuan, Zhiming; Fan, Shenggen; Zhang, Yumei; Wang, Jingjing; Meng, Ting |
| Abstract: | In the current Chinese diets, merely 14% of residents adhere to the recent dietary guidelines. The excessive consumption of red meat presents significant health and environmental challenges, leading to increased pressure on protein feed imports. This study proposes a pragmatic solution wherein the entire population partially replaces red meat with soybeans in China, and evaluates the impacts. Employing meta-analysis and counterfactual analysis, we investigate the correlations between food intake and disease risk, calculating avoidable mortality and the associated disease burden. Consuming 50g/day of soybeans may prevent 1.2 million deaths annually, saving $250.74 million indirect costs and $3.52 billion in direct medical expenses. Through substituting, completely eliminating the population exceeding 100g daily red meat intake in China could preventing 0.28 million deaths, and saving $247.66 million indirect and $2.06 billion direct medical costs. Furthermore, utilizing a partial equilibrium model, we projected the regional impacts and costs of following the recommended soybean consumption on water use, land use, carbon, nitrogen, and phosphorus emissions. Through dynamic data validation, estimating a 19.6% reduction in carbon emissions, 5.4% less water use, 26.2% lower nitrogen footprint, and 24.6% less phosphorus footprint. These findings offer valuable evidence for improving agricultural economic policies and strategies in China. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2024–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:cfcp15:344309 |
| By: | Sébastien Jean; Kevin Lefebvre |
| Abstract: | This paper investigates the bilateral impacts of antidumping measures, beyond directly targeted products and exporting firms. It focuses on the country whose exports are most exposed to such measures, China. Product-level analysis shows that export volumes are negatively affected for products similar to a product targeted by an antidumping case, i.e. belonging to the same tariff heading. Using firm-level data, we show that this impact is driven by within-firm contagion: targeted firms not only cut their exports of targeted products, they also reduce significantly their exports of non-targeted products. The decrease is half as large for the latter than for the former, but the total impact on bilateral trade is far larger, because the value of export flows affected by these indirect impacts is ten times larger than the value of directly targeted export flows. In addition, interestingly, this effect is more pronounced for small and private firms. |
| Keywords: | antidumping, spillovers, multi-product firms, China |
| JEL: | F12 F13 F14 F15 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11212 |
| By: | Yun Liao |
| Abstract: | This study investigates the relationship between bank efficiency and stock market valuation using an unbalanced panel dataset of 42 listed banks in China from 2006 to 2023. We employ a non-radial and non-oriented slack based super-efficiency Data Envelopment Analysis (Super-SBM-UND-VRS based DEA) model, which treats Non-Performing Loans (NPLs) as an undesired output. Our results show that the relationship between super-efficiency and stock market valuation is stronger than that between Return on Asset (ROA) and stock market performance, as measured by Tobin's Q. Notably, the Super-SBM-UND-VRS model yields novel results compared to other efficiency methods, such as the Stochastic Frontier Analysis (SFA) approach and traditional DEA models. Furthermore, our results suggest that bank evaluations benefit from decreased ownership concentration, whereas interest rate liberalization has the opposite effect. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.14734 |
| By: | Dukalskis, Alexander |
| Abstract: | Decades of social science research on human rights norms has mapped the conditions under which states sign and ratify treaties, abide by their conditions, and promote or criticize human rights in other states. Some norms contained in the core human rights treaties, particularly civil and political rights, are seen by authoritarian states as politically threatening. Autocracies can parry human rights norms by deflecting their substance while simulating compliance. They can also contest them through existing international institutions and seek to change their content over time. This paper investigates China’s engagement in the United Nations Human Rights Council, focusing on both the content and practices of the PRC’s approach. In terms of content, it examines China’s proposed resolutions and voting record to determine the issues it prioritizes. In terms of practices, it identifies four modes China has used to pursue normative change: mobilizing like-minded countries, implied coercion, tactical deception, and repression of critical voices. These modes capture a range of activity in and around multilateral institutions, some of which usually do not draw scholarly attention in studies of normative change. The findings provide insights into the future of human rights norms both in the UN and in the global human rights system more generally. |
| Keywords: | Social and Behavioral Sciences, human rights, democracy, authoritarianism, United Nations, China, Human Rights Council |
| Date: | 2022–08–17 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:globco:qt3f04q4q5 |
| By: | Agnes Norris-Keiller; Tim Obermeier; Andreas Teichgraeber; John Van Reenen |
| Abstract: | When firms sell in multiple markets, estimates of markups from the demand-side will generally diverge from estimates based on the supply-side (e.g. via production functions). The empirical examination of the importance of this fact has been hampered by the absence of market-specific cost data. To overcome this, we show production markups can be expressed as the revenue-weighted average of demand-based markups across markets (and products). This highlights that a divergence in demand-based and production-based markups is due to the revenue shares and markups across foreign and domestic markets, factors that can be assessed with readily available trade data. Using data from auto firms producing in the UK, we show production-based markups increased between 1998 and 2018 whereas demand-based markups decreased. These trends can be reconciled by an increase in the markup that UK-based producers gained on their exports, which we corroborate using administrative trade data. We find that increases in production-based markups have been driven by exports, particularly to China where foreign brands command high markups. |
| Keywords: | markup divergence, auto markets, supply and demand |
| Date: | 2024–07–26 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2022 |
| By: | Kleinhans, Jan-Peter |
| Abstract: | One of the fiercest domains of U.S.-China technology rivalry centers around semiconductors, which enable advances in a range of strategic and essential sectors—from communications and computing, to healthcare, military systems, and transportation. For policymakers interested in stymying Chinese advances in semiconductors, the perfect chokepoint to exploit through export restrictions is a product that plays an indispensable role in the broader ecosystem and is controlled by very few companies with high market-entry barriers. This paper reviews experience with one such product: electronic design automation (EDA) tools. The author argues that the U.S. and allied governments can use EDA as a chokepoint to curb China’s chip design capabilities in the medium term, but that they should also strengthen incentives for the development and adoption of open-source EDA tools by the broader industry. Supporting the development of open-source EDA tools does not diminish their market dominance at the cutting-edge but “democratizes” chip design at the trailing-edge and mature nodes—of high relevance for industrial, automotive, and health applications. |
| Keywords: | Social and Behavioral Sciences, Technology, geopolitics, economic security, export controls |
| Date: | 2022–12–09 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:globco:qt16d3b8z5 |
| By: | Ding, Jeffrey |
| Abstract: | Scholars connect China’s technology policy to government interventions that target particular industrial sectors. But not all sectors are created equal. Relying on evidence from China’s Artificial Intelligence (AI) policies, this paper develops a framework for assessing China’s approach toward promoting a technological domain that permeates across many industrial sectors: general-purpose technologies. It shows that China’s AI strategy diverges from expectations derived from typical characterizations of China’s industrial policy, which stress an emphasis on self-sufficiency, support for a limited number of national champions, and the essential role of military investment and demand for progress in dual-use domains. |
| Keywords: | Social and Behavioral Sciences, Emerging technology, geopolitics, economic security, artificial intelligence |
| Date: | 2022–12–09 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:globco:qt1sb844ws |