This paper examines Sino-US trade relations, focusing on the ongoing process of globalproduction sharing, involving splitting of the production process into discrete activities thatare then allocated across countries, and the resulting trade complementarities between thetwo countries in world manufacturing trade. The results suggest that the Sino-US tradeimbalance is basically a structural phenomenon resulting from the pivotal role played byChina as the final assembly centre in East Asia-centered global production networks. This paper proposes Sino-US trade relations, focusing on the ongoing process of global production sharing, involving splitting of the production process into gear activities thatare then assigned across countries, and the resulting trade complementarities between thetwo countries in world manufacturing trade. The Sino-US tradeimbalance is basically a structural phenomenon resulting from the pivotal role played by China as the final assembly centre in East Asia-centered global production networks.