Vertical specialization trade patterns and China’s trade surplus
The fact that China is enjoying a trade surplus reflects its position in the vertical division of labor at the current stage. China cannot develop without interacting with the markets of developed economies; it needs to develop bilateral trade relations. Furthermore, increased imports from developed economies with which it has large trade surpluses will help China handle trade disputes and correct trade imbalances. The geographical distribution of trade surpluses among three optimized trade development zones in China displays the differential pace of regional trade growth, both across provinces and across three trans-provincial areas.
Vertical specialization ...