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The Oxford Companion to the Economics of China$
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Shenggen Fan, Ravi Kanbur, Shang-Jin Wei, and Xiaobo Zhang

Print publication date: 2014

Print ISBN-13: 9780199678204

Published to Oxford Scholarship Online: December 2014

DOI: 10.1093/acprof:oso/9780199678204.001.0001

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Effects of China’s trade on other countries

Effects of China’s trade on other countries

(p.104) 14 Effects of China’s trade on other countries
The Oxford Companion to the Economics of China

Gordon H. Hanson

Oxford University Press

This chapter reviews studies on the impact of China’s growth on the global economy. Some studies suggest that China’s surge has slowed down export growth in manufacturing-oriented emerging economies. These affects appear to be larger for countries whose manufacturing sectors compete directly with China’s export processing plants, such as Mexico’s maquiladoras. Other work suggests that China’s impact on its competitors is more complex, helping to attract foreign direct investment (FDI) to countries in Asia that are part of the same global supply chains while diverting FDI away from countries outside the region. A new strand of research focuses on China’s economic impact on how firms, industries, or regions adjust to trade shocks.

Keywords:   economic growth, economic development, economic impact, Chinese economy, exports, trade shocks

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