Reconstruction Of Global Value Chain And The Adjustment Of China 's Foreign Trade Structure

Since the1960s, the international division of labor has undergone profound changes, and the value chain extensively developed. Developing countries integrated into global value chains by undertaking industrial transfer, which led to the formation of a new international division. After the1970s, based on the international vertical specialization of production, products trade made the trade between the developed and developing countries active again, which became the fastest growing international trade section.China, as the largest developing country in the manner of processing trade into the global value chain of production, accessed to30years of rapid growth. U.S. financial crisis in2008, accompanied by a decline in world economic growth, shrinking world trade, caused both developed and developing economies suffer significant fluctuations in trade.How the international financial crisis will affect China’s trade and the international division of labor is worth attention.This paper theoretically and empirically analyzes the restructuring of global value chains.The global value chain is formed on the comparative advantage,scale economy and incomplete contract theory. After the international financial crisis, motivation factors have undergone great changes, which makes the restructuring of global value chains possible. Based on the comparative advantage in labor,"re-industrialization", technology, emerging economies, and the shifting market, from two aspects of horizontal integration and vertical integration, this paper analyzes the reason of value chains reconstruction and reality, and also reveals the condition of global value chains’restructuring by calculating the Herfindahl-Hirschman index (HHI). Calculations show some representative industries of buyer-led value chains has a clear upward trend of the HHI index, while part of the producer-driven value chain industries on the contrary. However there is no completely consistent trend in the same value chain. Substantive changes in the worldwide division structure has not yet occurred. Under the global value chain transmission mechanism, China suffered trade structure fluctuations during the crisis. Fluctuations in China trade structure presents some of the features:general trade export accounted for a dominant position; compared to trade in goods, trade in services was less affected by the crisis; from commodity exports structure, mechanical and electrical products declined. Structural fluctuations in trade after the crisis is mainly cyclical changes, supplemented by structural changes. China also undergoes a new changes in the pattern of international division of labor. That labor-intensive industries will be transferred to other developing countries is difficult to change, and the proportion of processing trade declined, indicating the extent of China’s participation in global value chains may be reduced. Reconstruction of buyer-driven value chain needs efforts to expanse or transfer to producer-driven value chain. Due to the current observation time is short, it is difficult to come to the conclusion that the value chain reconstructing has been highlighted. However, the restructuring of global value chains as a potential factor should be an important consideration.