Trade-in-Value-Added Analysis of East Asian Production Networks: Focusing on Changes during the First Trump Administration

Abstract

Purpose: This study examines how the U.S.–China trade conflict during the first Trump administration (2017–2020) reshaped the structure of East Asian production networks from a trade-in-value-added (TiVA) perspective. Research design, data and methodology: Using the Asian Development Bank’s multiregional input–output tables (MRIOT, 2007–2023, constant 2010 USD), the paper constructs a six-economy framework—China, Japan, Korea, Taiwan, Vietnam, and the Rest of the World—and reclassifies 35 industries into six technology-based sectors (PP, RB, LT, MT, HT, Services). The analysis measures each country’s domestic value-added share (DVA) and value-added exports (VAX) ratios. Results: Results show that, while DVA remained stable overall, Korea and Taiwan experienced a sharp rise during the Trump years, whereas China’s share declined modestly. Bilateral VAX ratios reveal declining interdependence among China, Japan, and Korea but rising linkages with Vietnam. Conclusions: These findings suggest a transition from a hub-and-spoke to a multi-hub network structure in East Asia’s manufacturing value chains.