GVC Evolutions: New Trends and China’s Policy Response

Jing Linbo (荆林波)1* and Yuan Pinghong (袁平红)2

1 Chinese Academy of Social Sciences Evaluation Studies (CASSES), Beijing, China

2 School of International Trade and Economics, Anhui University of Finance and Economics, Bengbu, China

Abstract: In today’s digital economy, new technologies such as artificial intelligence, big data, and the internet of things (IoT) have stronger influence on global value chains (GVCs). As GVCs overcome physical boundaries, the space economy is becoming a new agent of growth. Developed countries dominate the rules of regional trade agreements, leading to endogenous restructuring in GVCs. In multi-tiered GVCs, certain countries garner a large portion of value-added. With the new trend in GVCs in mind, China should consolidate its strengths in the digital economy as new growth agents replace old ones, gain a favorable position in the space economy with the Chinese space station, create a global trading network through the Belt and Road Initiative (BRI), and acquire more value-added by capitalizing on the sophisticated global value chain.

Keywords: global value chains, digital economy, regional trade agreements, space economy, block chain

JEL Classification Codes: F02

DOI: 10.19602/j.chinaeconomist.2021.03.02