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. In terms of procurement, it exhibits a “neighboring” characteristic centered on the Asia-Pacific region; in terms of sales, it shows a “dual-core” pattern focusing on the Asia-Pacific and North American regions. Finally, from the industry perspective, the domestic procurement of domestic-funded manufacturing enterprises is concentrated in high-tech and low-tech industries, while their overseas procurement is focused on high-tech industries. The share of domestic sales is significantly higher than that of overseas sales. High-tech sectors are the core of overseas dependence and face the risk of choke points. The marginal contribution of this paper lies in introducing the ownership dimension into the measurement of the dependence of intermediate goods on external purchases and sales. This not only provides a quantitative basis for China to expand intermediate goods trade and enhance supply chain resilience, but also offers a new analytical paradigm for the risk measurement of heterogeneous entities in the global value chain.