China’s exports in information communication technology and its impact on Asian countries

Abstract

This paper analyzes the export growth of China’s information communication technology (ICT) products in two major markets Japan and the US from 1995 to 2008 and its competition with six East Asian countries: Indonesia, Malaysia, Philippines, Thailand, Singapore and Korea. The analysis shows that China has emerged as the largest single supplier of ICT products to both markets. By 2008, China’s exports accounted for 44 and 38% of total Japanese and the US ICT imports respectively. On the other hand, market shares of the six East Asian countries either remained stagnant or decreased substantially. The analysis by destination markets and by product categories indicates that, there exist significant negative correlations between market shares of China and that of the six East Asian countries, implying that the rapid expansion of China’s ICT exports crowded out exports of its East Asian competitors.

Appendix 1: Standard international trade classification, revision 3, (SITC, Rev 3)

75—Office machines and automatic data-processing machines

• 751—Office machines

• 752—Automatic data-processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s.

• 759—Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines falling within groups 751 and

76—Telecommunications and sound-recording and reproducing apparatus and equipment

• 761—Television receivers (including video monitors and video projectors), whether or not incorporating radio-broadcast receivers or sound- or video-recording or reproducing apparatus

• 762—Radio-broadcast receivers, whether or not incorporating sound-recording or reproducing apparatus or a clock

• 763—Sound recorders or reproducers; television image and sound recorders or reproducers; prepared unrecorded media

• 764—Telecommunications equipment, n.e.s., and parts, n.e.s., and accessories of apparatus falling within division

77—Electrical machinery, apparatus and appliances, n.e.s., and electrical parts thereof (including non-electrical counterparts, n.e.s., of electrical household-type equipment)

• 772—Electrical apparatus for switching or protecting electrical circuits or for making connections to or in electrical circuits (e.g., switches, relays, fuses, lightning arresters, voltage limiters, surge suppressors, plugs and sockets, lamp-holders and junction boxes); electrical resistors (including rheostats and potentiometers), other than heating resistors; printed circuits; boards, panels (including numerical control panels), consoles, desks, cabinets and other bases, equipped with two or more apparatus for switching, protecting or for making connections to or in electrical circuits, for electric control or the distribution of electricity (excluding switching apparatus of subgroup 764.1)

• 773—Equipment for distributing electricity, n.e.s.

• 775—Household-type electrical and non-electrical equipment, n.e.s.

• 776—Thermionic, cold cathode or photo-cathode valves and tubes (e.g., vacuum or vapour or gas-filled valves and tubes, mercury arc rectifying valves and tubes, cathode-ray tubes, television camera tubes); diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices; light-emitting diodes; mounted piezoelectric crystals; electronic integrated circuits and microassemblies; parts thereof

• 778—Electrical machinery and apparatus, n.e.s.