China’s Position in Global Value Chains Compared with the EU, U.S. and Japan

Lai Weijuan (赖伟娟) and Zhong Zihua(钟姿华)
School of Economics and Commerce, South China University of Technology, Guangzhou, China
Abstract: By creating a five-country I-O model of China, EU, US, Japan and other
countries, this paper decomposes gross export into nine parts and investigates the GVC
positions and competitiveness of China and the other three economies for different sectors
using real domestic trade in value-added and GVC position indices. In addition, valueadded
trade is taken into consideration to identify the labor division characteristics of
the four economies in the GVC, which led to the following findings: China participates
primarily in the single links of the GVC at the downstream yet shows a significant tendency
to move upstream in technology-intensive sectors; Japan participates primarily in the single
links of the GVC at the upstream and boasts an advantage in technology-intensive sectors;
the US participates in the multiple links of the GVC at the upstream with superiority in hightechnology
sectors; the EU participates in the production and export of intermediate goods
and final goods at both ends.
Keywords: global value chains, trade in value-added, GVC position indices, value-added
trade
JEL Classification: F14, F23

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