Comparative analysis of domestic value-added in China-U.S. trade

Based on the framework developed by Hummels et al (2001), this paper estimates the domestic value added in the exports of China to U.S. and U.S. to China. We find the following results: The value that comes from other countries to the export of China is much higher than U.S., those sectors that are likely to be labeled as sophisticated or high-skilled, such as computers, electronic devices, and telecommunication equipment, tend to have especially low shares of domestic content in China.