Description
ICT exports in China have had the most intensive trade frictions since 2018. Considering this important fact, this paper offers an in-depth discussion of the telecommunication industry in China before the severe Sino-U.S. trade war to figure out why this industry has been at the target. We first majorly investigate whether changes in the exchange rate affect China’s information and communication technology (ICT) exports differently depending on their sophistication levels. We estimate the exchange rate effects for 44 ICT HS 4-digit export categories included in Attachment A for the WTO Information Technology Agreement (ITA) by employing high-dimensional fixed effects of the bilateral trade data between China and 196 partner economies ranging from 2003 to 2018. Results indicate that exchange rate appreciation negatively affects ICT exports in general. Notably, the adverse effect of appreciation is weaker on more sophisticated ICT exports than on less sophisticated ones. We also provide a product-level exchange rate effect analysis for important ICT products and a detailed analysis of the industrial development strategy.| Period | 31 Jul 2024 → 2 Aug 2024 |
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| Event title | Singapore Economic Review Conference (SERC) |
| Event type | Conference |
| Location | Singapore, SingaporeShow on map |
| Degree of Recognition | International |