Chinese adding value to their exports

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Paul Montgomery
Paul Montgomery
10 years ago

Is it just that value-added exports are growing, or is it also that raw resources exports are falling because they’re plowing their resources back into VAEs? I feel like we’d need graphs of resources exports as well to make better sense of it.

Peter T
Peter T
10 years ago

Old news.

Start with textiles.
Then go to simple manufactures (nowadays most commonly plastic moulding)
Then to fault-tolerant mechanical (like refrigerators or air-conditioners)
and to electronic assembly.
Then to electronic fabrication.
Then to cars (Great Wall ute), as a step to precision heavy machinery.
At each step have government act as lead purchaser/sponsor until the process has been ironed out.
Australia bought very large x-rays from China eight years ago – they performed as well or better than anything American or European, at roughly one third the cost. Initially made for the Chinese government; now sold to around 30 countries.

Japan, Korea, Taiwan last century.

France, Germany, Italy the one before.

There’s a rhythm to these things.