Introduction

In recent years there has been a sharp increase in the trade of intermediate goods between ASEAN countries and China, reflecting the emergence of China as a regional “assembly centre” and sourcing the bulk of parts and components from countries in South-East and North-East Asia (often referred to as East Asia) in the production of final goods for export to the United States and the European Union. This expansion of trade in intermediates is closely linked to the spread of international prodution networks (IPNs) in Asia.

Related Subject(s): International Trade and Finance