<div> The traditional flow of goods from primary production to manufacturing and consumption has expanded across international borders with globalization. Vertical specialization (VS) in processing and manufacturing has driven export growth in China. In particular, intra-industry and intra-product trade between China, the US and East Asia has increased China’s trade surplus over the long term.<BR> The author aims to measure the level of VS in the Chinese manufacturing industry to provide a more accurate representation of China’s trade surplus. He considers empirical analysis on provinces and products with important VS activities in order to assess China’s trade value-added. Exploring the vertical division of labor, and foreign direct investment (FDI) driving China’s import and export imbalance, the book is divided into eleven chapters, each covering an aspect of VS in China: Trade surplus, VS trade patterns and China's trade surplus, The role of VS in the development of China's trade surplus, VS, FDI, and China's import-export imbalance, FDI and the processing trade in China, The relation between imports and exports of China's foreign-invested enterprises based on VS, and Rebalancing the Chinese trade.</div>