This chapter examines the hypothesis that VS plays an important role in China’s trade surplus development. China’s standard statistics of trade surplus are amplified and sustainable due to VS using the I/O table of China over the period 2000–2007. We find evidence that China’s trade surplus has been amplified. Standard trade statistics give a wrong impression of the reality of export value-added per sector using the I/O table (2000/2002/2007) in China/Jiangsu/Guangdong.
Globalization has altered world production and consumption networks. ...