This paper analyzes the role of processing trade in the People’s Republic of China (PRC)’s bilateral trade balances and the impact of the yuan’s appreciation on processing trade. The analysis is based on panel data covering the PRC’s 51 trading partners from...

Trade statistics portray the People's Republic of China (PRC) as the largest exporter of high-tech products. In this paper I will argue that the PRC’s leading position in high-tech exports is a myth created by outdated trade statistics which are inconsistent with trade based on...