Because the value added of Chinese exports to the United States is fairly low (i.e., exports incorporate lots of foreign components), it is unclear how much damage would be inflicted on bystanders. Wells Fargo uses data on trade in value added to show Taiwan’s exposure.
As of 2011, 1.5% of Taiwanese value added was accounted for by exports to the mainland subsequently incorporated into Chinese exports. For Korea, it’s slightly less than 1%.
Things to keep in mind.
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