School of Business and Management Department of Economics 195 Firms in Globalization: Evidence from China Supervisor: LI Yao / ECON Student: DUAN Yuting / MAEC WANG Yixuan / MAEC Course: UROP1100, Summer UROP2100, Summer This paper aims to study the impact of the trade war between China and US, especially on global value chain of 5G-related products. We mainly observe and compare the change of import value and applied tariff of China and US. We also take attempt to find their correlation by regression. In an overall view, China's import relies on US much less and reduces relatively quicker after trade war. Meanwhile, there is a negative relation between tariff and trade value. As for 5G-related products, most of them are moderately dependent on each other while China relies more on US. As a result, trade war is reducing both counties' dependence on each other, which in general bring more challenges to US but has opposite effect among 5G-related products. Firms in Globalization: Evidence from China Supervisor: LI Yao / ECON Student: LI Yuhe / RMBI LUK Wing Yiu / ECOF Course: UROP1100, Summer UROP1100, Summer This paper focuses on the significance of FDI in raising the productivity of Chinese firms. We deployed a firm-level dataset to deduce the relationship between labour productivity and firms’ ownership. The results show that the productivity of foreign-invested firms is higher than their domestic counterparts. Our results are also robust if we use different definitions of foreigninvested firms. Besides, we summarized the destination and industry distribution, and labour productivity of OFDI firms. We found that the most OFDI intensive destinations are developing countries when measured using capital investment but are developed countries when measured using number of investing firms. OFDI intensive industries are highly concentrated in electronics, transportation and metals sectors. Also, firms with OFDI have significantly higher labour productivity than the ones that do not, especially domestic firms. Firms in Globalization: Evidence from China Supervisor: LI Yao / ECON Student: LIAO Caixing / ECOF SU Xuanjing / ECOF Course: UROP1100, Summer UROP1100, Summer This report documents aggregate level and product level facts regarding the trade war. The first part introduces background information. The second part studies the mutual trade importance of the US and China, as well as their trade diversion destinations. The third part quantifies the trade diversification level. The fourth part examines the US-China trade balance, thus sheds light on the bilateral comparative advantage of product groups classified based on stages of processing. The last part concludes the research and proposes future research directions. More disaggregate level analysis is required to identify the causality between the trade war and trade diversion effects.
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