Trade in Value Added Between the USA and China

The main topic of this article is the bilateral trade in value added between the USA and China. The goal is to look at this bilateral trade in the context of "the new wave of globalization". To fulfill this broadly specified goal the article tries to answer following questions: How much are the USA and China involved in global value chains (GVC)? What is the development of the classical bilateral trade using the balance of payments methodology? Where does the value added in exports come from (geographical structure)? Are there any differences between different industry sectors? One of the main findings is that domestic value added in trade between these two countries is relatively high (US almost 90%, China more than 80%). There was also a trend of stagnation in the United States and a volatility across most of the indicators in the case of China.