China vs. USA: Unpacking Their Central Roles in the Global Production Network

The United States, as the world's largest consumer market, is through the "Climate Act", "De-Risking", and other means, and continues to promote friend-shoring, near-shoring, and industrial chain relocation plan to China's import and export trade recovery a layer of haze. From 2020 onwards, China will gradually decline from the United States' largest trading partner to the third largest trading partner, surpassed by Mexico and Canada, and the gap in market share is increasing. In conclusion, Sino-US trade friction has profoundly changed the structure of the international division of labor and the structure of traded commodities, and how to measure the impact on the global economic system as well as the industrial status of the two countries from the perspective of complexity science has become an important issue worthy of research. This paper utilizes the Multi-Region Input-Output (MRIO) Data compiled by the Asian Development Bank (ADB) to construct the Global Production Network (GPN) aimed at restoring the transfer process of intermediate products in the Global Value Chain (GVC), and designs a dynamic network characteristic indicator based on the biased random walk process, and uses it to measure the industrial impact and demand dependence of the industrial sector on a global scale. The study shows that Sino-US trade friction can ostensibly protect the United States trade, but it actually hinders the process of globalization, and can only win a certain competitive advantage for it in the short term; in the long run, this unilateral protection behavior is not only detrimental to the integration of the global economy, but will also exacerbate the trade deficit, intensify trade friction, and weaken its own economic strength. Finally, based on the principles of "mutual respect, peaceful coexistence, and win-win cooperation", this paper puts forward policy recommendations for expanding and deepening economic and trade cooperation between the two countries.