List of figures and tables List of abbreviations Acknowledgements About the author Chapter 1: Introduction: Trade surplus in China - vertical specialization and related issues Abstract: The starting point: China's vertical specialization trade Trade surpluses are as much a source of conflict as strength Analyzing the impact of vertical specialization on China's trade surplus Chapter 2: Vertical specialization trade patterns and China's trade surplus Abstract: China's trade: more and more centered on trade surplus Vertical divisions of labor driving China trade China's trade is still dependent on western markets for final goods exports Three optimized trade development zones: regional foreign trade disparity in China Chapter 3: An analysis of the role of vertical specialization in the development of China's trade surplus: evidence from 2000-2007 Abstract: Introduction Import and export of commodities: structure and trade pattern transition in China What role for vertical specialization trade in China's trade surplus? Conclusion Chapter 4: Vertical specialization, FDI and China's import-export imbalance Abstract: Introduction China's acceleration into vertical specialization due to FDI Empirical evidence of the relationship between FDI and international trade in China based on VS Conclusion Chapter 5: FDI and the processing trade in China: based on vertical specialization Abstract: Introduction Processing trade: the form of China's strong involvement in vertical specialization Empirical evidence: the relationship between FDI and the processing trade Conclusion Notes Chapter 6: An empirical analysis of the relation between imports and exports of China's foreign-invested enterprises based on vertical specialization Abstract: Introduction Empirical evidence: the relationship between imports and exports of foreign invested enterprises (FIEs) in China Conclusion Chapter 7: An empirical study of the relationship between the US FDI inflows and China-US bilateral trade imbalances: based on vertical specialization Abstract: Introduction Unique features of China-US trade due to vertical specialization considerations Empirical test Conclusion Chapter 8: A cointegration analysis of the linkage between US exports to China and US imports from China based on vertical specialization Abstract: Introduction Empirical evidence: the relationship between US Exports to China and US Imports from China The Error-Correction model for the long-run relationship between {LNEX_SA} and {LNIM_SA} Conclusion Chapter 9: FDI, processing trade and China-Japan bilateral trade imbalance Abstract: Introduction Evolution of the China-Japan trade pattern Japanese direct investments in China, Chinese processing trade and China-Japan bilateral trade: empirical evidence Conclusion Chapter 10: An empirical analysis on transformation of China's foreign trade development mode: based on vertical specialization Abstract: Introduction Conceptual framework of vertical specialization and mode transformation of foreign trade development in China The impact of vertical specialization on mode transformation of foreign Trade development in China: empirical evidence Conclusion Chapter 11: Closing remarks: rebalancing the Chinese trade Abstract: Appendix References Index.