American Export Control to China and the Upgrading of Chinese Enterprises' Global Value Chain
CHENG Kai1, JIN Zhuiqiao2
1. Institute of Industrial Economics, Chongqing Academy of Social Sciences<Development Research Center of Chongqing Municipal People's Government>,Chongqing 400020,China; 2. Business School / European Study Institute,East China University of Science and Technology,Shanghai 200237,China
Abstract Based on the theoretical explanation of the influence mechanism of export controls to China on the upgrading of global value chain of Chinese enterprises, this paper takes American high-tech intermediates as an example to test the impact and mechanism of American export controls on the upgrading of global value chain of Chinese enterprises by using Chinese micro-enterprise data. The study shows that US export controls to China will inhibit the upgrading of the global value chain of Chinese enterprises, and this result is still valid after a series of robustness tests. The mechanism test indicates that the US export control to China mainly affects the upgrading of its global value chain by reducing the cost addition rate of Chinese enterprises and increasing the relative price of intermediate goods at home and abroad. Extensive analysis shows that compared with general trade enterprises, US export controls to China have a greater inhibitory effect on the upgrading of global value chain of processing trade enterprises. However, compared with high-tech innovative enterprises, US export controls to China have a greater inhibitory effect on the upgrading of the global value chain of low-tech innovative enterprises. In addition, the government subsidies received by companies will weaken the inhibitory effect of US export controls on the upgrading of their global value chains. Therefore, the Chinese government should continue to expand the scope of economic and trade cooperation and deepen economic and trade ties with substitute countries of other import sources, so as to weaken the adverse impact caused by the decoupling of the United States from China.
CHENG Kai,JIN Zhuiqiao. American Export Control to China and the Upgrading of Chinese Enterprises' Global Value Chain. Economic Survey, 2023, 40(5): 061.
2023, Vol. 40 
