The Measurement and Analysis of Dependence on Intermediate Goods Purchase and Sale in China's Manufacturing Industry from the Perspective of Firm Ownership

Against the backdrop of global supply chain restructuring and the expansion of intermediate goods trade, this study employs a world input-output model that distinguishes between the heterogeneity of firm ownership to measure and analyze the dependence of China’s manufacturing industry on the purchase and sale of intermediate goods from three dimensions: territory, ownership and industry. The findings are as follows: Firstly, from the territorial perspective, approximately 90\% of the intermediate goods purchased and sold by China’s manufacturing industry are sourced from and sold within the domestic market.

Its overseas sales include a large volume of indirect sales, and there exists heterogeneity in its purchase and sale activities with the world’s three major manufacturing regions. Secondly, from the ownership perspective, about 80% of the intermediate goods purchased and sold by China’s domestic-funded manufacturing enterprises are from and sold in the domestic market. A clear trend is observed that the share of purchases and sales between domestic-funded enterprises in China has increased; while the share of purchases from foreign-funded enterprises in China and foreign enterprises has decreased, the share of sales to foreign entities has grown.