This paper provides a systematic analysis of spatial and sectoral characteristics and changes in virtual water flows associated with China’s interregional and international trade based on the China interregional input–output tables of 2002 and 2007. The results show significant improvement in water use efficiency between 2002 and 2007. However, the general spatial patterns and sectoral components of virtual water flows have more or less remained during the period. Almost all Chinese provinces are net exporters of virtual water in international trade. In interregional trade, the dominant direction of virtual water flow is from peripheral provinces to eastern coastal provinces. The agricultural sector plays an important role in shaping this direction and has significant impacts on water uses in exporting provinces, some of which are water scarce. The results of this study clarify some confusions concerning mismatches between regional water endowments and virtual water trade within China and with other countries.

Although substantial studies emphasized the close relationship among land development, public infrastructure, and urban economic growth, the mediating effect of public infrastructure remains unexplored. Using panel data of 253 prefecture-level Chinese cities from 1999 to 2012, we empirically conduct a mediating effect analysis to examine how land development promotes urban economic growth. It is found that land development has a positive impact on public infrastructure, whereas the construction of public infrastructure is positively related with urban economic growth. Therefore, land development exerts a positive influence on urban economic growth through one important mediator: public infrastructure. It is also found that the mediating effect of public infrastructure is partial. The estimation results are robust to various specifications and sensitivity analysis.

The North China Plain is the scarcest water region in China. Its water security is closely related to interregional water movement, which can be realized by real water transfers and/or virtual water transfers. This study investigates the roles of virtual water trade and real water transfer using the Interregional Input-Output model. The results show that the region is receiving 19.4 billion m³/year of virtual water from the interregional trade, while exporting 16.4 billion m³/year of virtual water in the international trade. In balance, the region has a net virtual water gain of 3 billion m³/year from the outside. Its virtual water inflow is dominated by agricultural products from other provinces, totalling 16.6 billion m³/year, while its virtual water export is dominated by manufacturing sectors to other countries, totalling 11.7 billion m³/year. Both virtual water imports and real water transfers from the South to North Water Diversion Project are important water supplements for the region. The results of this study provide useful scientific references for the establishment of combating strategies to deal with water scarcity in the future.