CHINA-EU GLOBAL VALUE CHAINS WHO CREATES VALUE HOW AND WHERE?

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Table 1.17: Comparative advantages across sector and value added category in Electrical and optical equipment exports, 2009 Agriculture and Food Mining and Fuel Light Manufacturing 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

Low-skill EU CHN 27.8 23.2 3.1 4.1 3.1 1.9 2.1 1.7 2.4 1.4 2.6 2.5 2.1 2.2 1.8

Medium-skill EU CHN 2.0 9.3 1.0 2.2 1.3 1.4 1.7 1.3 1.4 1.3 1.9 2.2 1.5

High-skill EU CHN 1.3 2.4 1.6

EU

1.7 2.3 1.9 1.3 2.0 1.8 1.1

1.4 1.9 1.8 1.6

Capital CHN 14.6 12.2 5.6 6.2 7.3 7.7 6.2 3.2 8.6 2.6 2.3 3.8

1.8 2.4 1.7

Source: Own calculations, note: Comparative advantage calculated as country-sector-type of value added divided by total sector value added which is then divided by world equivalent. Values above 1 identify an input sector / factor comparative advantage in the production of electrical and optical equipment exports. Values below 1 (comparative disadvantage) omitted for readability.

1.5.4.2.

TRANSPORT EQUIPMENT

Here we take a closer look at the transport equipment value chain. In Table 1.18 we show the origin of intermediate products in the production of transport equipment output in 2009. In this sector the EU imports 9% of its intermediates with no single country supplying more than 2% of intermediates. China sources 90% of its intermediates domestically, 4% from the EU and 2% from Japan. The international value chains in North America seem to be more fragmented, as suggested by Mexico and Canada’s relatively low use of domestic intermediate inputs (at around 60%). Both countries are highly reliant on the US which supplies around 20% of the intermediates they use to produce transport equipment. A similar relationship emerges between the EU and Turkey. Where main suppliers of intermediates are concerned, the big players are; the EU, China, Japan, the US and to a lesser extent Korea. Mexico and Canada are important but only in Factory North America.

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