This paper investigates the potential displacement of China's industrial and supply chains by a group of fourteen Asian economies (Altasia) using a multi-regional input-output (MRIO) model. The findings suggest that Altasia, due to strong industrial complementarity among its members, poses a greater substitution threat than ASEAN alone. Counterfactual modeling indicates that reduced trade barriers within Altasia could accelerate the relocation of China's industrial and supply chains, particularly in resource- and labor-intensive sectors. While Altasia weakens China's influence, profitability, and risk robustness in global supply chains, China maintains significant competitive advantages in capital- and technology-intensive sectors.
Publisher
HUMANITIES AND SOCIAL SCIENCES COMMUNICATIONS
Published On
Sep 30, 2024
Authors
Lizhi Xing, Shuo Jiang, Simeng Yin, Fangke Liu
Tags
China
Altasia
industrial supply chains
trade barriers
multi-regional input-output model
ASEAN
economic impact
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