The trade of intermediate goods plays a pivotal role in the establishment and progression of global value chainsBy engaging in the exchange of these goods, countries align their production processes to leverage their comparative advantagesThis strategic focus allows nations to concentrate on different stages of production, which in turn fosters a highly coordinated international production networkThrough the trade of intermediate goods, businesses can expand their production capacities, enhance their innovation capabilities, streamline supply chain management, and improve product qualityThese factors collectively contribute to industrial upgrading and the elevation of the value chain, simultaneously propelling the deepening of the global value chain system.

China, as the world's largest trader of intermediate goods, occupies a crucial position in the global value chain ecosystem, acting as a key manufacturing and assembly hub that enhances the collaborative development of global production networks

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The flourishing of intermediate goods trade not only enlarges China's participation in the global value chain in terms of both breadth and depth but also invigorates the intricate system of global value chainsIn the electronic information industry, for instance, China’s intermediate goods trade spans a wide array, from mobile phone chips and display modules to countless electronic components and smart manufacturing equipmentThis rapid development within the intermediate goods sector provides robust support for the innovation and developmental growth of the global electronic information industry.

Moreover, in traditional industries where China has established competitive advantages, such as textiles, the quality and reasonable pricing of its intermediate goods are highly sought after in international marketsThis not only opens vast opportunities for the growth of the textile sector but also contributes positively to the optimization and perfection of the global textile supply chain.

The trade of intermediate goods promotes the formation of tight industrial chains and regional value chains between China and neighboring countries, thereby deepening the integration of regional economies

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An exemplary case is the Regional Comprehensive Economic Partnership (RCEP), which has facilitated profound integration of industrial chains among member nationsThis agreement encourages countries to focus on their respective production segments where they hold comparative advantages, resulting in highly complementary industrial chainsNotably, the structure of intermediate goods trade has continuously improved, with an increasing proportion of high-tech and value-added products emerging in the marketFurthermore, the RCEP implementation also advances the process of trade facilitation among member countries by streamlining customs procedures and reducing tariff barriers, which enhances the smoothness of intermediate goods tradeAccording to the General Administration of Customs, in the first quarter of this year alone, China's exports to other RCEP member nations reached 1.6 trillion yuan, marking a 2% increase, with intermediate goods exports growing by 2.1%, constituting 31.7% of China’s total intermediate goods export value

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The exports of electronic components and labor-intensive intermediate goods witnessed particularly rapid double-digit growth.

Furthermore, the trade of intermediate goods strengthens regional collaboration and enhances regional competitivenessThe "Belt and Road Initiative" represents a significant strategy for China aimed at fostering international economic and trade cooperation while expanding foreign investment and opennessIn this process, China collaborates with participating nations in the construction of infrastructure such as transportation and communication, which effectively reduces logistics costs and improves transportation efficiencyThese developments create favorable conditions for the rapid advancement of intermediate goods trade, fostering the growth of regional economic cooperation and bolstering overall regional competitivenessMoreover, the innovation of economic and trade cooperation mechanisms also supplies a new impetus for expanding the trade of intermediate goods

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China has established numerous bilateral and multilateral economic and trade cooperation frameworks with countries involved in the "Belt and Road Initiative," leading to a gradual elimination of trade barriers and a continuous enhancement of trade facilitation levelsThis results in more seamless flow of intermediate goods, offering businesses increased market opportunities and expansive growth potential.

Currently, China is undergoing a transition phase in its export industrial structure, advancing from the low-end to the high-end of the global value chainThe country aims to harness its super-large market advantages to promote greater production, processing, and manufacturing of intermediate goods within China, propelling the nation closer to its goal of becoming a powerhouse in trade.

To achieve this, technological innovation stands as the central driving force behind the high-quality development of intermediate goods trade

Enterprises must increase their R&D investments, secure core technologies, and enhance the technological content and value-added nature of their productsEstablishing and perfecting a robust supply chain management system will also be crucial, as it enhances supply chain resilience and stabilityAdditionally, encouraging enterprises to bolster cooperation between academia and industry can facilitate the transformation and application of technological achievementsStrengthening collaborations with international organizations and other countries will be essential in maintaining the stable operation of global supply chains, creating a conducive external environment for the growth of intermediate goods tradeMoreover, refining the trade policy and regulatory framework is a critical guarantee for advancing the high-quality development of the intermediate goods sectorEnhanced research and formulation of trade policies and regulations will ensure scientific rationality and maintain a fair and equitable trade environment.

With a solid foundation and substantial strength, China’s intermediate goods trade has emerged as a new growth engine for both imports and exports