Study on the Impact of State Relations on China’s Industrial Supply Chain Upstream from the Perspective of International Trade: A Case Study of Mineral Resources

Yixuan Wang

doi:10.54254/2977-5701/7/2024061

Research Article

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Published on 25 July 2024

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Wang,Y. (2024). Study on the Impact of State Relations on China’s Industrial Supply Chain Upstream from the Perspective of International Trade: A Case Study of Mineral Resources. Journal of Applied Economics and Policy Studies,7,32-38.

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Study on the Impact of State Relations on China’s Industrial Supply Chain Upstream from the Perspective of International Trade: A Case Study of Mineral Resources

Yixuan Wang *^,1,

¹ Nanjing University of Science & Technology

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2977-5701/7/2024061

Abstract

As a major global power, China’s overseas interests are rapidly expanding. Ensuring the security of industrial supply chains has become a critical issue. This paper adopts the perspective of international trade, utilizing the random frontier gravity model, and focuses on the top five mineral products and raw materials exported from China to India according to the 2019 export composition table of the Ministry of Commerce of the People’s Republic of China. Based on export data of these minerals from China to India between 2008 and 2023, this paper analyzes the trends in mineral import and export, studies the correlation between bilateral trade between China and India and changes in Sino-Indian relations, and points out the potential impact of current Sino-Indian relations on China’s upstream industrial chain. The study finds that for mineral fuels, mineral oils and their products, asphalt, zinc and its products, and steel products, Sino-Indian relations have a relatively minor impact on China’s imports of such minerals and raw materials from India. However, for steel resources, Sino-Indian relations show a significant positive correlation with their import situation. Based on the current state of Sino-Indian relations, the study will propose relevant recommendations for the production and export of Indian steel and other mineral resources, combined with the needs of China’s upstream industrial supply chain. This study aims to provide relevant insights and references for safeguarding China’s strategic mineral resource security.

Keywords

international trade, random frontier gravity model, mineral resources

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Journal：Journal of Applied Economics and Policy Studies

Volume number: Vol.7

ISSN：2977-5701(Print) / 2977-571X(Online)

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