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e organization of the production and marketing system: independent local firms are likely to pete more directly than affiliates of the same MNC spread over different countries in an integrated system.This paper does not try to measure China’s petitive threat or its effects, but to map relative export performance in the 1990s by technology and destination and so assess where the threat appears most intense. We focus on major East Asian exporters5 and on exports to third markets, but we also analyses plementarities between China and East Asia, particularly in electronics, the region’s largest export and the one where MNC systems dominate. As the 1990s predate China’s WTO accession, we do not go into the implications of this accession。 however, the analysis of petitive trends has implications for the evolution of future trade by the region as liberalization grows.Background on Chinese export performanceChinese manufactured exports grew by % per annum over 19902000, pared to % for the world, % for all developing countries and % for the rest of East Asia. Its share of world manufactured exports rose from % to % over the decade and continued rising rapidly. 6 Thus, by 2002 China accounted for % of world merchandise exports。 they are upgrading rapidly. China is investing heavily in technology and advanced skills。D and linkages。 the latter two also lose in the US. Thailand is a big gainer in Japan while Indonesia and the Philippines lose out in the US. Low technology products: China’s massive market share gains are again concentrated in Japan. The four mature Tigers generally suffer losses in market share, but Singapore sees an increase in Japanese market share. The best overall performance among the new Tigers is by Indonesia.Medium technology products: While the Chinese pattern of success recurs, the new Tigers make significant gains in Japan and Korea incurs a significant loss. Taiwan and Singapore suffer losses in the US market. High technology exports: Taiwan again diverges from Korea in its performance in Japan, the former showing the second largest gain in the group (after China) and the latter the largest loss. In the US market, the situation is reversed, with Singapore joining Taiwan in losing market shares. Among the new Tigers, Malaysia and the Philippines are the big gainers in Japan, but the other two also benefit significantly. The Philippines is the second largest winner in the group in the US market. In sum, China’s main market share gains in the developed world are concentrated in Japan (though the US accounts for a larger dollar value of export growth). This is also true of its neighbors with the exceptions of Korea and Indonesia (Hong Kong was an allround loser). To the extent that we can interpret market share changes to be causally related to China’s export surge, it would seem that the mature Tigers suffered the most from Chinese petition. The largest such loss is in low technology products, which is to be expected, but this not take into account the growth of LT exports by Korea and Taiwan to China. The relatively low gains by the lowerine new Tigers in LT may also reflect the impact of Chinese petition – without the offsetting increase in exports of intermediates to China. ConclusionsChina’s export surge has raised grave concerns in the region. While some of the apocalyptic predictions may have been overdone, it is