Based on Global Value Chain to analyze the Sino-US Trade Imbalance in Manufacturing Industry

Abstract

Based on the data of Inter-Country Input-Output Tables (ICIO) from the world input-output database (WIOD), with the perspective of global value chain, Sino-US exports on different technology manufacturing industry are completely decomposed to calculate trade gains. The conclusion is that manufacturing industry coming back to the United states deviated from the logic of economics, and the costs of manufactured goods produced in the United states is rising, consumer purchasing power is decline, then it will stunt economic growth. The real purpose of the United states government criticizes China is to bargain with China. The stock of the goods trade deficit cannot be changed in the short term, but China can seek a breakthrough from the incremental quantity, to participate in high technology and knowledge intensive production, process and service procedure.