Analysis of the Impact of the United States' Decoupling of Trade with China on the Global Value Chain Division of China's Mechanical and Electrical Industry

Abstract

This article matches the cases of China US trade frictions to various sub sectors of the electromechanical industry, considers the comparative advantage index of heterogeneous product quality, and uses regression analysis to simulate different scenarios of tariffs. It directly affects the participation of Chinese electromechanical products in the global value chain division of labor, and provides reasonable suggestions for maintaining the comparative advantage position of the electromechanical industry in the global division of labor. The conclusion of this article is as follows: 1. The decoupling and chain breaking measures taken by the United States towards China have had an impact on China's global value chain division of labor in the electromechanical industry, and overall have suppressed its comparative advantage position; 2. The decoupling and chain breaking measures have a more significant impact on the global value chain division of labor in the electromechanical industry in recent times; 3. It is suggested to timely promote measures to extend, strengthen, and supplement the supply chain, and build a unified national factor market to mitigate the negative impact of the United States' decoupling and block chain measures.