Competitiveness changes in China's quality vegetable exports post‐WTO
| Published date | 19 June 2009 |
| Pages | 86-99 |
| DOI | https://doi.org/10.1108/17544400910966068 |
| Date | 19 June 2009 |
| Author | Xue Liu,Brian J. Revell |
| Subject Matter | Economics |
JCEFTS
2,2
86
Journal of Chinese Economic and
Foreign Trade Studies
Vol. 2 No. 2, 2009
pp. 86-99
#Emerald Group Publishing Limited
1754-4408
DOI 10.1108/17544400910966068
Competitiveness changes in
China’s quality vegetable
exports post-WTO
Xue Liu
China Agriculture University, Beijing, People’s Republic of China, and
Brian J. Revell
Harper Adams University College, Newport, UK
Abstract
Purpose – The purpose of this paper is to examine patterns of recent change in China’s international
export trade in high quality fresh-vegetables between 2002 and 2005 since its WTO membership and
some of the underlying determinants that will determine its future export opportunities.
Design/methodology/approach – A trade-shares accounting and decomposition approach is
adopted which enables the sources of change in China’s aggregate export market shares be identified
in terms of both structural effects (SEs) through the share-shifts in world trade of its major trading
partners and performance effects (PEs) of changes in China’s penetration of individual markets.
Findings – China’s underlying comparative advantage in labour-intensive products such as fresh
vegetables is reflected in the positive PE of its increase in share of world trade since WTO
membership. There has been an emerging re-orientation in its trade shares from E Asia to SE Asia,
and to further penetration into the Russian Federation and US markets, but little overall evidence of
significant enhanced penetration of developed country markets.
Research limitations/implications – The methodology, whilst identifying the predominant
sources of dynamic changes in trade shares, does not explain or model the causes of such
developments. However, as such it is useful in focussing attention on where significant changes have
taken place and hence where further research into modelling such bi-lateral or multilateral trade
flows would be fruitful.
Originality/value – Hitherto competitiveness studies have tended to focus either on aggregate trade
flows, or at the broad sectoral level such as agriculture. Those in relation to China have also tended to
be of a predictive nature in assessing the potential WTO impact on China’s trade and agriculture.
This study addresses China’s actual trade performance at the product category and individual
product level, and examines the strategic implications for China’s fresh produce export sector. It also
assesses whether the initial expectations of positive gains in exporting fresh vegetables have been
realised thus far, and what adjustments in China’s global trading patterns have emerged in this
sector.
Keywords China, Vegetables, Export markets, Competitive strategy
Paper type Research paper
1. Introduction and objectives
In December 2001 China acceded to the WTO, thereby rendering its agricultural and
food sectors more open to international competition through impo rts, but also
cementing China’s food sector more firmly into the global trading economy as an
exporting nation. Inde ed China’s Ministry of Agriculture (MoA, 2004, p. 49) was
particularly positive about its WTO membership, recognising that it presented not
only challenges (especially in soybeans and cereals), but also oppor tunities. In
particular, it would be entitled to most favoured nation treatment in its international
trade and access to a WTO regulatory framework for settling trade dispute s, have a
potential to reduce its costs in international trade in farm produce, and also be able to
exploit its cost advantages in the production (and processing) of certain agricultu ral,
aquatic and horticultural products.
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