Title:
The US vs. China Regional Integration in International Trade of Manufactured Products

Authors:
Jongkers Tampubolon*, Albina Ginting and Hotden L. Nainggolan, Indonesia

Abstract:

This study compares the global and regional performance of international trade in manufactured goods between the United States and China, and analyzes the level of trade integration between the two countries in their partner regions. Using gross export and import data, (i) trade activities in the form of exports, imports, and trade balances, as well as (ii) the level of regional integration in the trade of manufactured products, are examined. The regional integration of the US and China across manufactured products is analyzed using the regional trade introversion index (RTII). In line with global trends, both the US and China have experienced rapid growth in manufacturing exports. However, China consistently records a trade surplus both globally and regionally across all manufacturing product groups. Meanwhile, the US consistently records a trade deficit across the globe, and for every product group, despite its comparative advantage in high-skill, technology-intensive manufactured products, particularly in developed economies. The integration analysis, which produced a higher RTII US value in the trade of manufactured products, particularly medium/high-skill and technology-intensive products, indicates that China exports more final goods (as an assembler), while the US exports more intermediate goods that will be re-imported after being processed by partner countries. This phenomenon is reinforced by the US trade balance data, which shows a steadily increasing surplus in trade in services, whilst China is experiencing a deficit, particularly in the area of charges for the use of intellectual property, which have been rising consistently.

DOI: https://doi.org/10.51505/IJEBMR.2026.10503