| Abstract | Drawing upon the transnational input-output analysis, this paper quantifies the status quo and dynamics of Chinese integration into the global value chains (GVCs) via intermediate, value-added and input-output linkages. We find that since the accession into WTO, China’s intermediate import ratio falls after rise, while the foreign value-added contents in China’s products and services tend to increase. For China, the value-added-based GVCs integration is stronger than the intermediate-based one. China has much closer linkages with the US, Japan, Korea, Chinese Taiwan and Germany if measured by intermediate and value-added, but such linkages with the US and Germany are on the rise while those with Japan, Korea and Chinese Taiwan tend to drop. Most of Chinese sectors tend to import more value added and also export more value added to economies with higher income. For most of Chinese sectors, the output- and input-based linkage indices are above 1.5 and even higher than those of corresponding sectors in the US, and moreover most sectors have experienced a growth in these two linkages. This shows that China has already deeply integrated into the GVCs through output supply and input demand channels. This paper not only provides an empirical foundation for reflecting on how to upgrade China’s location in the GVCs, but also offers policy suggestions for China optimizing the arrangement of economies and sectors when effectively promoting regional economic integration. |