Research On The Impact Of Division Of Global Value Chains On The International Trade Frictions

Our country rapidly integrated into the division of global value chains (GVC) bydeveloping processing trade, and seized the historic opportunity of internationalindustrial shift, actively participated in the process of economic globalization andpromoted the rapid development of the export-oriented industry, and realized the rapidgrowth of foreign trade especially after China joined WTO. According to the NationalBureau of Statistics, China's total foreign trade value is41600billions of dollars, up7.6%over the previous year. Our country'export value is22096billions of dollars, up7.9%over the previous year; import value is19504billions of dollars, up7.3%over theprevious year; trade surplus is2592billions of dollars, up289billions of dollars over theprevious year. When the foreign trade increased rapidly, the international market share of‘made in China' is also rising, the pace of industrial chain upgrade gradually is speedingup, and in order to weak the impact of our country in GVC and the pace of upgrade, ourcountry's main trading partners initiated anti-dumping and anti-subsidy as well assafeguard measures etc. The increasing international trade frictions have become thegreat obstacles for the development of foreign relations and the implementation ofstrategy of development, which restricted the promotion of our country's status ininternational division and the optimizing and upgrading of open economy. Therefore, theresearch of how to speed up the optimizing and upgrading of domestic industries in theframework of GVC and ultimately control the middle and high end link of GVC, so as toimprove China's disadvantage in GVC and get rid of the international trade frictions fromthe source has important theoretical and practical significance.The thesis is divided into6chapters and the major issues of this thesis focus on thefollowing questions:Chapter1is an introduction about the research background, the theoretical andpractical significance, domestic and international literature review, the major researchcontent and framework, research methods, innovations and deficiency of the paper.Chapter2is the theoretical analysis of GVC. Firstly, this chapter introduces therepresentative theory of GVC, including the value chain theory, a new theory of valuechain, virtual value chain theory, value network theory, the theory of global value chain, and the governance of global value chain model such as the market-oriented governancemodel, module type management mode, mode of relational governance, capturemanagement mode, hierarchical governance mode. Secondly, this chapter introduces thegame theory, which including the evolution and the basic concepts as well as the types ofthe game theory.Chapter3introduces the evolution of GVC and the mechanism of internationaltrade frictions. Firstly, this chapter expounds the connotation, evolution, and themotivation of GVC, including the economic globalization is the produce condition,international industrial transfer is its development path; foreign direct investment is thebase of its extension; the information technology revolution is its power; theliberalization of trade and investment policy orientation is the system guarantee of itsdevelopment; the establishment and improvement of the multilateral trading system is itsoperating rules. Secondly, this chapter introduces the characteristics of GVC: the spacelayout of GVC is accelerating in the world; the roles of leaders and followers are clear;comparative advantage is still the basis of GVC; the trade structure is upgrading; profitdistribution is complex. Then this chapter studies the mechanism of the development ofGVC and international trade frictions: GVC have a significant impact on the internationaldivision: changing the leading body of GVC, changing the form of economic relationsamong countries, changing the nature of the economic relations among countries,changing the interest distribution mechanism, and changing the focus of internationalcompetition. Finally, this chapter analyses the contradictions and conflicts among theinterests of GVC allocation: the benefits increment of GVC, that is developed countriesare the leaders of GVC and occupy the vast majority of benefits; developing countriesobtain the following benefits: promotion of the export ability, upgrading of the industrialstructure, the induced and compulsory institutional change effect, etc.; the benefitsimpairment of GVC, that is the loss of developed countries'control for GVC, theimbalance of international payments, industrial hollowing, rising unemployment, etc.;developing countries are facing ‘lock-in effect',‘enclave effect',‘beach economic' of thelow-end in the value chain, tragic growth of the borrowed prosperity and nationaleconomic security are threatened, etc. The conflicts of GVC, including the differencesand dynamism of national status in the division of labor and the imbalance of obtaining interests, which lead to global economic imbalances; while the status of countries in theinternational division and the reconstruction of the interest distribution structure willinevitably cause the spread and upgrading of the trade frictions.Chapter4introduces the impact of GVC on the international trade frictions. Firstly,this chapter analyses the breadth of the impact of GVC on the international trade frictions:the impact on the extension of the international trade frictions'main bodies; the impact onthe expansion of the international trade frictions'objects; the impact on the displacementof center countries of international trade frictions; Secondly, this chapter analyses thedepth of the impact of GVC on the international trade frictions: the impact on theupgrading of the international trade frictions'methods; the impact on the dislocation ofthe international trade frictions'objects; the impact on the changed focus of internationaltrade frictions'methods; GVC have made the international trade frictions rapidly becomecompound frictions; the expanding impact on the international trade frictions.Chapter5is the empirical analysis of the breadth and depth of the impact of GVCon the international trade frictions among China and foreign countries. Firstly, thischapter analyses the status and the dilemma as well as the harm of China in GVC: Chinais in the escalating transition state of GVC between low-end aspects of the value chainand the high-end aspects of the value chain of the R&D designs and brand service, ourcountry is facing the containment of developed countries and catching up and squeezingof developing countries especially emerging economies, which can initiate multiplepressures of more intense international trade frictions. China's status in GVC madeChina's economy be trapped in a dilemma of six ‘highly dependent', while six ‘highlydependent' seriously threaten China's economic security. Secondly, this chapterelaborates the impact of GVC on the international trade frictions among China andforeign countries. The breadth of the impact of GVC on the international trade frictionsamong China and foreign countries: developed countries are the major initiators ofChinese and foreign trade frictions; trade frictions among China and developingcountries are rapidly rising; the fields of Chinese and foreign trade frictions are extendingrapidly. The depth of the impact of GVC on the international trade frictions among Chinaand foreign countries: the methods of the international trade frictions among China andforeign countries are escalating; the focus of the trade frictions has spread to the entire industry; China has already become the greatest victim of intellectual property rightsfrictions; the international trade frictions among China and foreign countries have agrowing influence on Chinese economy. Finally, this chapter makes an empiricalanalysis of the impact of GVC on trade conflicts among China and foreign countries: thisthesis analyses the impact of China's status in GVC on trade conflicts among China andforeign countries by using the poisson regression model, and the results show that thestatus of China in GVC is positively correlated with the breadth and the intensity ofChina's trade conflicts.Chapter6proposes the strategies of how to participate in GVC and defuse the tradefrictions for China.