FDI in China and global production networks: Assessing the role of and impact on big world players (East Asia, Japan, EU28 and U.S.)

This paper analyzes several effects of FDI accruing to Textiles, Chemicals, Electronics and Machinery in China. Though the four sectors have contrasting production technologies and vary largely in trade patterns, the related Chinese exports and imports still follow a general trend: East Asia and Japan are the main intermediate suppliers while the rest of regions play more the role of final markets. The paper describes the networks among big regions, providing their relative importance across different levels (local industry, global industry, host economy and world economy). It also estimates a rich set of regional impacts after the rising FDI inflows.