5 According to US Congressional testimonies by KC Fung the p

5) According to U.S. Congressional testimonies by K.C. Fung, the paper by K.C. Fung and Sarah Tong as well as the paper by Judith Dean, K.C. Fung and Zhi Wang, there are several features associated with Chinese trade and foreign direct investment. List four such features and discuss.

Solution

The authors have given credit of the growing extensive international trade of CHina to few factors. These mainly are vertical integration and fragmentation of processing.

CHina\'s trade has few unique features which make it distinct and able to grow at high speed.

The first feature is associated with the nature of its imports. China\'s processing imports are only intermeditae goods which are used only in processing exports not for local goods.

The second feature is associtaed iwth kind of exports goods. China\'s processing exports are highly concentrated by by sectors with more than two third in to three sectors which are Electrical machinery, Machinery and optical and Medical and precision instrument.

Vertical specializetion is a key feature of its trade.