La conquista obrera: la estatización de las minas

China is regarded in the literature, as the leading country in terms of deepening of vertical intra-industry trade specialization (i.e. production sharing), and as the engine of export growth of the East Asian region (e.g. Kozo, Sazanami and Yu Ching, 2006; Lall and Albaladejo, 2004; Haltmaier et al., 2007). Trade in P&C, particu- larly electrical and electronic P&C, has been one of the most dynamic elements of China’s trade in general23_,

including its regional trade with ESSEA. Exports and imports of P&C, necessary for the production of items covered by SITC 7, increased at average annual rates of 29.6 per cent and 18.5 per cent, respectively, over the period 1992/93–2004/05 (table 13). Such rates far exceeded the corresponding growth rate for exports of manufactured goods as a whole, which was about 20 per cent. The share of P&C in exports and imports of manufactured products was more than13.2 per cent and 20.5 per cent, respectively, in 2004/05. Trade in the 10 main items of P&C (mostly electrical and electronic goods) expanded even faster than those of total P&C. China has become a net exporter of these main products.

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Table 13: China’s trade in parts and components of SITC 7, 1992–2005

Exports Imports Growth rate (%)*

1992/93 2004/05 1992/93 2004/05 X M

Total :

Value (US$ million) 3 458 77 950 10 243 79 317 29.6 18.5

Share in total manufactures (%) 5.3 13.2 15.6 20.5

Ten main items:

Value (US$ million) 2 757 68 71 6 746 66 746 30.7 21.1

Share in parts and components (%) 79.7 88.1 65.8 84.1

Source: Author’s calculations based on UNCOMTRADE database. * Average annual growth rate for the period 1992/93–2004/05. X = exports; M= imports.

Data for the regional trade of China in P&C and their corresponding finished products are exhibited in table 14. In the table, the developing economies/regions are ranked according to the value of imports of P&C in 2006. The data also illustrates the total trade of China with ESSEA, excluding Hong Kong (SAR, China), because of its special situation as a major re-exporter. Even when Hong Kong (SAR, China) is excluded, China is not only a large market, but also a net importer of P&C and finished products from the region. Yet it is a net exporter to the rest of the world. Therefore, it acts as an export hub for the region.

Secondly, such a large market does not benefit all countries to the same extent. Three groups of econo- mies can be distinguished in order of their importance as providers of the selected products. The first group is the Republic of Korea and Taiwan (Province of China) (NIEs). China’s trade balance with these economies is significantly negative for both P&C as well as finished products. This is because they are major regional suppli- ers to China of sophisticated P&C that it does not produce domestically and requires for assembly of finished products, mostly for export. They also export some sophisticated finished consumer goods and capital equip- ment to China for its own domestic consumption.

The second group consists of four ASEAN members: Indonesia, Malaysia, Singapore and Thailand (ASEAN-4). China is a net exporter of P&C to these countries, except to Singapore, and a net importer of finished products, mainly from Singapore. In 2005, imports of six electronic products (SITCs 776,752, 764, 771, 716 and 751 in this order of importance) accounted for 77 per cent of China’s imports from the “rest of ASEAN” of which SITC 776 accounted for over 60 per cent. The trade relations of China with the rest of ASEAN are dominated by trade in electronics with the Philippines, rather than with lower-income members of that regional group (table A.6). China also imports a small amount of electronic goods (worth about US$39 million) from Viet Nam (annex table A.2).

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Table14: China’s trade in main parts and components and their corresponding finished products for main SITC product categories, 2006

(values in US$ million)

Region/ Economy

Parts and component Corresponding finished goods

Imports Exports Balance Imports Exports Balance

Value % Value % Value Value % Value % Value

Republic of Korea 12 406 14.39 4 777 4.90 -7 629 22 496 13.0 5 835 2.9 -16 634

Taiwan (Province of China) 8 060 9.35 3 478 3.57 -4 582 28 017 16.2 4 897 2.5 -23 120

ASEAN-4 5 996 6.96 8 830 9.06 2 834 27 614 16.0 13 122 6.6 -14 492

Hong Kong (SAR, China) 1 726 2.0 29 891 30.66 28 165 1 848 1.1 43 111 21.6 41 263

Rest of ASEAN 1 249 1.45 966 9.06 -283 14 299 8.3 1 885 0.9 -12 414

India 96 0.11 1 046 1.07 950 65 nil 3 000 1.5 2 935

SAARC, excl. India 2.8 nil 340 0.35 347.2 5 nil 903 0.5 898

Total above 29 535 34.27 49 327 50.59 19 792 94 343 54.7 72 592 36.4 -21 751

Total excl. Hong Kong, (SAR, China) 27 809 18.21 19 436 19.93 -8 373 92 495 53.6 29 481 14.8 -63 014

Japan 17 421 20.21 8 349 8.56 9 072 18 935 11.0 13 575 6.8 -5 360

Others 39 226 45.52 39 828 40.85 598 59 340 34.4 113 373 56.8 54 033

Total 86 185 100 97 502 100 11 317 172 618 100 199 486 100 26 868

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The Philippines has become an increasingly important exporter of electronic products since the late 1980s through the involvement of Japanese and United States firms. Three characteristics of the country have attracted FDI: its proximity to other East Asian countries involved in the vertical production system, its ease of regional transport due to its vast coastal areas, and its low-wage and skilled human-power. Japan and the United States have been its main markets, but its exports of high-tech products to China have also increased significantly, from 1.3 per cent of its total exports in 2000 to 13 per cent in 2005 (Haltmaier et al., 2005: 32-36). Whether such a rapid expansion is due to the involvement of China’s FDI or not requires further investiga- tion.

The third group consists of lower-income country members of SAARC and India, from which China imports only a small amount.

Finally, even when Hong Kong (SAR, China) is excluded, over 60 per cent of China’s exports go to developed countries: Japan (7 per cent) and mainly the United States and other countries (57 per cent)24_{. In}

other words, China could be vulnerable to changes in the market situation in developed countries for exports of its finished products, and risks transmitting these changes to other countries of the ESSEA region through its demand for P&C and finished goods, which amount to nearly US$30 billion and US$100 billion, respec- tively. The study turns to this issue after explaining the role of the market and government in the expansion of production sharing below.