Abstract
China’s role in global value chains (GVCs) has changed fundamentally in recent decades. The country has moved from being the world factory for a diverse range of low-tech, mid-tech, and high-tech consumer goods to the goal of becoming a technological leader in sectors linked to advanced manufacturing, cloud computing, artificial intelligence, electric vehicles, and new e-commerce and internet-related production networks while lessening its dependence on the United States and other traditional export markets by focusing on its domestic market and emerging regional markets. China has achieved this transformation in its development trajectory by combining two drivers of change: upgrading from above and upgrading from below. While upgrading from above refers to the relatively familiar set of programs introduced by China’s central government that chart strategic shifts and new goals for the economy as a whole, upgrading from below is equally important but less well understood. It refers to the diverse set of local policies and firm-level activities at the provincial, regional, and city government levels that are required to implement and institutionalize China’s national programs and policy directives. The chapters of this book illustrate how upgrading from below works in practice in China and they suggest new research insights on how to analyze GVCs in China and other developing economies.
Keywords
- Global value chains
- China
- Upgrading from above
- Upgrading from below
- Local governments
- Resilience
This is a preview of subscription content, access via your institution.
Buying options
References
African Development Forum & World Bank. (2021). Industrialization in Sub-Saharan Africa: Seizing Opportunities in Global Value Chains. Washington, DC: World Bank Group.
Asian Development Bank. (2021). The 14th Five-Year Plan of the People’s Republic of China—Fostering High-Quality Development. Manila: Asian Development Bank.
Baldwin, R. (2014). Trade and Industrialization after Globalization's Second Unbundling: How Building and Joining a Supply Chain are Different and Why It Matters. In R. Feenstra & A. Taylor (Eds.), Globalization in an Age of Crisis: Multilateral Economic Cooperation in the Twenty-First Century (pp. 165–212). Chicago, IL: University of Chicacgo Press.
Baldwin, R., & Taglioni, D. (2009). The Great Trade Collapse and Trade Imbalances. VoxEU.
Bamber, P., & Fernandez-Stark, K. (2019). GVCs and Development: Policy Formulation for Economic and Social Upgrading. In S. Ponte, G. Gereffi, & G. Raj-Reichert (Eds.), Handbook on Global Value Chains (pp. 466–482). Cheltenham, UK and Northampton, USA: Edward Elgar Publishing.
Barbieri, E., Di Tommaso, M. R., & Bonnini, S. (2012). Industrial Development Policies and Performances in Southern China: Beyond the Specialised Industrial Cluster Program. China Economic Review, 23(3), 613–625.
Barboza, D. (2016, December 29). How China Build “iPhone City” with Billions in Perk's for Apple's Partners. New York Times.
Barrientos, S. (2019). Gender and Work in Global Value Chains: Capturing the Gains? (Development Trajectories in Global Value Chains). Cambridge: Cambridge University Press.
Barrientos, S., Gereffi, G., & Rossi, A. (2011). Economic and Social Upgrading in Global Production Networks: A New Paradigm for a Changing World. International Labour Review, 150(3–4), 319–340.
Butollo, F., & Ten Brink, T. (2018). A Great Leap? Domestic Market Growth and Local State Support in the Upgrading of China’s LED Lighting Industry. Global Networks, 18(2), 285–306.
Carnegie, M. (2022). After the Great Resignation, Tech Firms Are Getting Desperate. Wired.
Cattaneo, O., Gereffi, G., & Staritz, C. (2010). Global Value Chains in a Postcrisis World: A Development Perspective. Washington, DC: The World Bank.
Coe, N. M., Yeung, H. W.-C., Dicken, P., & Henderson, J. (2004). “Globalizing” Regional Development: A Global Production Networks Perspectives. Transactions of Institute of British Geographers, 29, 468–484.
De Marchi, V., Di Maria, E., Krishnan, A., & Ponte, S. (2019). Environmental Upgrading in Global Value Chains. In S. Ponte, G. Gereffi, & G. Raj-Reichert (Eds.), Handbook on Global Value Chains (pp. 310–323). Cheltenham, UK and Northampton, USA: Edward Elgar.
European Parliament. (2021). Resilience of Global Supply Chains: Challenges and Solutions. Briefing. Brussels: European Parliament.
Farrell, H., & Newman, A. (2020, March 16). Will Coronavirus End Globalization As We Know It? Foreign Affairs.
Foreign Policy. (2021). Semiconductors and the U.S.-China Innovation Race. https://foreignpolicy.com/2021/02/16/semiconductors-us-china-taiwan-technology-innovation-competition/. Accessed March 10, 2022.
Gereffi, G. (1994). The Organization of Buyer-Driven Global Commodity Chains: How US Retailers Shape Overseas Production Networks. In G. Gereffi, & M. Korzeniewicz (Eds.), Commodity Chains and Global Capitalism (pp. 95–122). Praeger Publishers.
Gereffi, G. (1999). International Trade and Industrial Upgrading in the Apparel Commodity Chain. Journal of International Economics, 48(1), 37–70.
Gereffi, G. (2014). Global Value Chains in a Post-Washington Consensus World. Review of International Political Economy, 21(1), 9–37.
Gereffi, G. (2018). Global Value Chains and Development: Redefining the Contours of 21st Century Capitalism. Cambirdge: Cambridge University Press.
Gereffi, G. (2019). Economic Upgrading in Global Value Chains. In S. Ponte, G. Gereffi, & G. Raj-Reichert (Eds.), Handbook on Global Value Chains (pp. 240–254). Cheltenham, UK and Northampton, USA: Edward Elgar.
Gereffi, G. (2020). What Does the COVID-19 Pandemic Teach Us About Global Value Chains? The Case of Medical Supplies. Journal of International Business Policy, 3(3), 287–301.
Gereffi, G., & Fernandez-Stark, K. (2011). Global Value Chain Analysis: A Primer. Durham, NC, USA: Duke University Center on Globalization, Governance & Competitiveness (CGGC).
Gereffi, G., & Fernandez-Stark, K. (2016). Global Value Chain Analysis: A Primer, 2nd ed. Durham, NC, USA: Duke University Center on Globalization, Governance & Competitiveness.
Gereffi, G., Fernandez-Stark, K., & Psilos, P. (2011). Skills for Upgrading: Workforce Development and Global Value Chains in Developing Countries. Durham: Duke University Center on Globalization Governance & Competitiveness.
Gereffi, G., Humphrey, J., & Sturgeon, T. (2005). The Governance of Global Value Chains. Review of International Political Economy, 12(1), 78–104.
Gereffi, G., & Lee, J. (2012). Why the World Suddenly Cares About Global Supply Chains. Journal of Supply Chain Management, 48(3), 24–32.
Gereffi, G., & Lee, J. (2016). Economic and Social Upgrading in Global Value Chains and Industrial Clusters: Why Governance Matters. Journal of Business Ethics, 133(1), 25–38.
Gereffi, G., Lim, H.-C., & Lee, J. (2021a). Trade Policies, Firm Strategies and Adaptive Configurations of Global Value Chains. Journal of International Business Policy, 4(4), 506–522.
Gereffi, G., Pananond, P., & Pedersen, T. (2022). Resilience Decoded: The Role of Firms, Global Value Chains, and the State in COVID-19 Medical Supplies. California Management Review, 64(2), 46–70.
Gereffi, G., Posthuma, C. A., & Rossi, A. (2021b). Labour Governance and the Future of Work in an Era of Disruptions and Global Value Chains. International Labour Review: Special Issue, 160(4), 501–671.
Gereffi, G., & Sturgeon, T. (2013). Global Value Chains and Industrial Policy: The Role of Emerging Economies. In D. K. Elms, & P. Low (Eds.), Global Value Chains in a Changing World (pp. 329–360). Geneva: World Trade Organization, Fung Global Institute and Termasek Foundation Centre for Trade and Negotiations.
He, S. (2007). State-Sponsored Gentrification Under Market Transition the Case of Shanghai. Urban Affairs Review, 43(2), 171–198.
Humphrey, J., & Schmitz, H. (2002). How Does Insertion in Global Value Chains Affect Upgrading in Industrial Clusters? Regional Studies, 36(9), 1017–1027.
Humphrey, J., & Schmitz, H. (2004). Chain Governance and Upgrading: Taking Stock. In H. Schmitz (Ed.), Local Enterprises in the Global Economy: Issues of Governance and Upgrading (pp. 349–381). Cheltenham, UK and Northampton, USA: Elgar.
IFR. (2022). World Robotics 2021 Industrial Robots. https://ifr.org/img/worldrobotics/Executive_Summary_WR_Industrial_Robots_2021.pdf. Accessed March 7, 2022.
Jin, K. (2022). Ameria is Fueling Chinese Techno-Nationalism. https://www.project-syndicate.org/commentary/america-fueling-china-state-support-for-technological-primacy-by-keyu-jin-2022-02 Accessed March 10, 2022.
Kaplinsky, R., & Morris, M. (2016). Thinning and Thickening: Productive Sector Policies in the Era of Global Value Chains. European Journal of Development Research, 28(4), 625–645.
Lee, J. (2010). Global Commodity Chains and Global Value Chains. In R. A. Denemark (Ed.), The International Studies Encyclopedia (pp. 2987–3006). Oxford: Wiley-Blackwell.
Lee, J., & Gereffi, G. (2021). Innovation, Upgrading and Governance in Cross-Sectoral Global Value Chains: The Case of Smartpones. Industrial and Corporate Change, 30(1), 215–231.
Mayer, F. (2014). Leveraging Private Governance for Public Purpose: Business Civil Society and the State in Labor Regulation. In A. Payne & N. Philips (Eds.), Handbook on the International Political Economy of Governance. Cheltenham, UK: Edward Elgar.
Mayer, F., & Gereffi, G. (2010). Regulation and Economic Globalization: Prospects and Limits of Private Governance. Business and Politics, 12(3), Article 11, 11–25
MGI. (2017). China’s Digital Economy: A Leading Global Force.
Mourdoukoutas, P. (2019). World's 500 Largest Corporations In 2019: China Matches America. Forbes.
Murphree, M., & Breznitz, D. (2020). Global Supply Chains as Drivers of Innovation in China. In F. Xiaolan, B. Mckern, & J. Chen (Eds.), Oxford Handbook of China Innovation. London: Oxford University Press.
National Bureau of Statistics of China. (2022). Data. http://www.stats.gov.cn/english/.
NBER (2018). The Spillover Effects of International Joint Venture in China. National Bureau of Economic Research, The Digest, 8.
O’Leary, L. (2020, March 26). The Modern Supply Chain Is Snapping. The Atlantic.
O’Neil, S. K. (2020, April 1). How to Pandemic-Proof Globalization: Redundancy, Not Reshoring, Is the Key to Supply-Chain Security. Foreign Affairs.
O’Neil, S. K. (2021). America’s Supply Chains Are Foreign Policy Now. https://foreignpolicy.com/2021/02/16/biden-supply-chains-manufacturing-foreign-policy-allies-globalization/. Accessed March 10, 2022.
OECD. (2022). OECD Data—Gross Domestic Spending on R&D. https://data.oecd.org. Accessed March 10, 2022.
Paterson, S. (2021). How Will China’s Dual Circulation Strategy Impact the Global Economy? Hinrich Foundation.
Ponte, S. (2019). Sustainability, Global Value Chains and Green Capital Accumulation. In S. Ponte, G. Gereffi, & G. Raj-Reichert (Eds.), Handbook on Global Value Chains (pp. 228–238). Cheltenham, UK and Northampton, USA: Edward Elgar.
PwC. (2022). The Global Innovation 1000 Study. https://www.strategyand.pwc.com/gx/en/insights/innovation1000/innovation1000---thank-you.html?vXhj=er5wxq6g. Accessed March 10, 2022.
Rodrik, D. (2007). One Economics, Many Recipes: Globalization, Institutions and Economic Growth. Princeton, NJ: Princeton University Press.
Shih, W. (2020, March 19). Is It Time to Rethink Globalized Supply Chains? MIT Sloan Management Review.
The Economist. (2021). What Tech Does China Want? https://www.economist.com/business/what-tech-does-china-want/21803410?itm_source=parsely-api Accessed March 10, 2022.
The White House. (2021). Building Resilient Supply Chains, Revitalizing American Manufacturing, and Fostering Broad-Based Economic Growth. 100-day Reviews Under Executive Order 14017. Washington, DC: The White House.
UN Comtrade. (2022). Global Goods Trade, 2019 and 2020. Total of all HS Commodities. In United Nations Statistical Division (Ed.). Geneva.
UNCTAD. (2022). World Investment Report 2021: Investing in Sustainable Recovery. Geneva: UNCTAD.
Whittaker, D. H., Sturgeon, T., Okita, T., & Zhu, T. (2020). Compressed Development: Time and Timing in Economic and Social Development. Oxford, UK: Oxford University Press.
WIPO. (2020). World Intellectual Property Indicators 2020. Geneva: World Intellectual Property Organization.
World Bank. (2020). World Development Report 2020—Trading for Development in the Age of Global Value Chains. Washington, DC: World Bank Group.
World Bank. (2022). World Development Indicators. Washington, DC: World Bank.
WTO. (2022). World Trade Statistical Review 2021. Geneva: World Trade Organization.
Yang, C. (2009). Strategic Coupling of Regional Development in Global Production Networks: Redistribution of Taiwanese Personal Computers Investment from the Pearl River Delta to the Yangtze River Delta, China. Regional Studies, 43(3), 385–407.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2022 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Gereffi, G., Bamber, P., Fernandez-Stark, K. (2022). China’s Evolving Role in Global Value Chains: Upgrading Strategies in an Era of Disruptions and Resilience. In: Gereffi, G., Bamber, P., Fernandez-Stark, K. (eds) China’s New Development Strategies. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-19-3008-9_1
Download citation
DOI: https://doi.org/10.1007/978-981-19-3008-9_1
Published:
Publisher Name: Palgrave Macmillan, Singapore
Print ISBN: 978-981-19-3007-2
Online ISBN: 978-981-19-3008-9
eBook Packages: Economics and FinanceEconomics and Finance (R0)