In this paper, we use the iPhone as a case to show that even high-tech products invented by United States (US) companies will not increase US exports, but on the contrary exacerbate the US trade deficit. The iPhone contributed US$1.9 billion to the US trade deficit with the People's Republic of...

Introduction -- Overview: China's Export Miracle, 1980- -- GVCs: The Catalyst of China's Explosive Growth -- The China-US Trade Imbalance from the GVC Perspective -- Diminished Impact of the Yuan Exchange Rate on Trade Balances -- A Supportive Policy Environment: The Key to China's GVC Entry --...