Table 1.16: Sectoral value added in the production of electrical and optical equipment exports 2009. Agriculture and Food Mining and Fuel Light Manuf. (textile, leather, wood, paper) Chemicals Rubber and Plastics Basic metals Machinery nec Electrical and Optical Equipment Transport Equipment Transport and logistics services Telecom services Financial services Renting M&Eq and other business services construction services other services Share
TOT 2% 6% 3% 3% 2% 7% 2% 42% 1% 3% 1% 4% 8% 0% 15%
World DOM 2% 3% 3% 2% 2% 6% 1% 50% 0% 3% 1% 4% 7% 0% 15% 69%
IMP 2% 12% 4% 4% 2% 8% 3% 26% 1% 5% 1% 4% 10% 1% 17% 31%
TOT 1% 3% 2% 2% 1% 5% 1% 46% 1% 3% 1% 3% 14% 1% 17%
EU DOM 0% 1% 2% 1% 1% 5% 1% 50% 0% 3% 1% 3% 14% 1% 17% 83%
IMP 2% 12% 4% 4% 2% 8% 2% 23% 1% 5% 2% 5% 13% 0% 18% 17%
TOT 3% 9% 4% 4% 2% 9% 2% 34% 1% 4% 2% 5% 6% 0% 16%
CHN DOM 4% 6% 4% 4% 3% 10% 2% 37% 1% 3% 2% 6% 4% 0% 15% 67%
IMP 1% 15% 3% 5% 2% 7% 3% 27% 1% 4% 1% 4% 10% 1% 16% 33%
Source: Own calculations, note: entries show the value added content of exports, intra EU value added imports are classified as EU domestic.
In Figure 1.30 we look at how the value added in exports in the electrical and optical equipment sector has evolved in time. In the left-hand panel we report this as a share of total value added whereas in the right-hand panel we look exclusively at values. What transpires is that although the domestic value added content of Chinese exports is falling (from 78% in 1995 to 67% in 2009), the value over which this is reaped is increasing rapidly and hence that China is getting a slightly smaller share of a much bigger pie ($26 billion in 1995 and $439 billion in 2009). Noteworthy is also the EU's increasing participation in this sector, it has seen its share rise from 4% in 1995 to 6% in 2009. This makes the EU the single largest external source of value added in Chinese electrical and optical equipment (more than Japan and the US). Figure 1.30: Evolution of the value added content of electrical and optical equipment exports in China 1995 and 2009 100%
6% 3% 2% 6% 2%
90% 80%
700,000
12%
70%
78,747 30,425 18,366 31,359 20,852
600,000
5% 3% 5% 3%
500,000
60%
400,000
50% 78%
40%
300,000
67%
30%
439,944
200,000
20%
100,000
10% 0% EU
CHN
4%
6%
1995
2009
TWN
JPN
KOR
USA
RoW
EU
1,951 1,045 603 1,993 692 26,510 1,238 1995 CHN
TWN
41,640 2009 JPN
KOR
USA
RoW
Source: Own calculations, note: Left-panel: value added share of one unit of electrical and optical equipment exports by origin. Right hand panel: dollar value of content of Chinese electrical and optical equipment exports by origin (values in $ billion).
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