Research On The Impact Of OFDI On China’s Position In The RCEP Regional Value Chain

This thesis explores the impact of China’s OFDI to RCEP member countries on China’s position in the RCEP regional value chains.Regional value chain(RVC)is a kind of regional production division of labor system between domestic value chain(NVC)and global value chain(GVC).In recent years,influenced by the New Crown Pneumonia epidemic and the trade protectionism of some countries,the challenges to global trade rules have become more severe,the scale of foreign investment of various countries has gradually decreased,and the global economic level is on a downward trend.Under the impact of the Newcastle pneumonia epidemic and unilateralism,various countries and economies have made efforts to seek regional economic cooperation to promote economic recovery.The Regional Comprehensive Economic Partnership(RCEP)was first proposed by ASEAN countries in 2011.2020 saw the official signing of RCEP.In this context,China and other RCEP member countries will further deepen investment cooperation,strengthen trade exchanges and form a new regional value chain.In this context,it is of great significance to study China’s position in the regional value chain of RCEP.Based on the previous research results,this thesis analyzes the current situation of China’s outward foreign direct investment(OFDI)and RCEP regional value chain,uses value chain-related indicators to describe China’s participation and position in the RCEP regional value chain,and constructs a regression model to empirically test the influence of OFDI on China’s position in the RCEP regional value chain.Due to the different levels of economic development of RCEP member countries,based on the availability and validity of data,this thesis selects RCEP member countries as the main body,takes China’s OFDI to other RCEP member countries as the core explanatory variable,and selects the regional value chain position index and regional value chain forward and backward participation index of 14 RCEP member countries as the explanatory variables.The empirical study finds that: China’s OFDI to RCEP countries has a positive effect on the improvement of China’s position in the RCEP regional value chain,which is conducive to the climbing of China’s position in the RCEP regional value chain.China’s OFDI to RCEP member countries is beneficial to China’s forward participation in RCEP regional value chains but not to China’s backward participation in RCEP regional value chains.This indicates that the 15 RCEP member countries including China are deeply involved in the value chain reconstruction,showing a pattern of both competition and cooperation.From the perspective of China’s participation in the value chain,China’s OFDI to other RCEP members promotes trade links between China and other RCEP member countries,and China and RCEP countries co-exist with each other in the upstream and downstream of the regional value chain.At the same time,the hierarchical characteristics of economic development of RCEP members are conducive to the transformation and upgrading of China and other members,but due to the similar location of China and some RCEP members in the regional value chain,crossover and certain competitive conflicts will inevitably occur in the process of transformation to the upstream of the value chain.In order to complete industrial upgrading and regional value chain status in the value chain reconstruction,China should actively develop regional value chains,actively promote regional economic integration through RCEP construction,and further strengthen regional value chain ties among other RCEP members through OFDI cooperation,so as to participate in the process of value chain reconstruction.In addition,China will seize the opportunity of signing RCEP to develop digital investment cooperation with other RCEP members such as cross-border e-commerce,promote industrial upgrading and technological innovation,enhance the status of regional value chains,and achieve high-quality economic development.And,this thesis puts forward relevant policy recommendations: first,to implement diversified investment model reform;second,to carry out moderate industrial transfer and talent introduction;third,to strengthen the attention and guidance to multinational companies’ OFDI;and fourth,to establish a dispute prevention and resolution mechanism.