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News About Seamus Grimes

Review of China and global value chains

  • Jun 12, 2018 |

     

    CHINA AND GLOBAL VALUE CHAINS: GLOBALIZATION AND THE INFORMATION AND COMMUNICATIONS
    TECHNOLOGY SECTOR By Yutao Sun and Seamus Grimes. London, UK: Routledge. 2018. 180
    pp. $140.00 (Hardcover). ISBN 9781138289079.

    Growth and Change DOI: 10.1111/grow.12246
    Vol. 49 No. 2 (June 2018), pp. 394–396

    China, as the largest supplier of manufactured goods in the world, is one of the most important
    nodes in this network. It provides variety of products to the world with its efficient labor force. In
    return it benefits greatly from the technology transfer brought by international companies and investors,
    especially in the recent decade’s internet revolution. Now China is the world’s largest supplier of
    IT products and is ambitious to transform itself from a product assembler to a designer.
    This book, written by Yutao Sun and Seamus Grimes, provides a multiscale perspective on the
    structure and function of GVCs and their critical role in the development and transformation of the
    economy in China. It focuses on the rapidly growing information and communication technology
    (ICT) sector and its soaring importance in the economic transition of China.
    The first chapter begins with Trump’s protectionist policies, which present a challenge to China’s
    export-oriented economy. By illustrating the Chinese landscape of international trade, foreign direct
    investment (FDI), science & technology (S&T) and innovation, it unveils China’s current imbalance
    between its significance in the global trade and investment network on the one hand and its relatively
    small role in S&T and innovation on the other. It introduces GVCs as a framework to analyze the
    Chinese economy’s reliance on low wage, low value-added manufacturing instead of high
    value-added S&T innovation and creative industries. Here, the authors emphasize the importance of
    value-added in the GVCs and global trade. They indicate a new view of international trade that uses
    the value-added standard rather than the pure trade volume to measure the importance of trade more
    realistically.
    Chapter 2 offers a theoretical framework about GVCs and their relationship to the country’s role
    in the world economy. Competitiveness is the most critical determinant of a country’s level in this
    hierarchical network. The book offers a multiscale approach to understanding the role of participating
    countries in GVCs. At the macro level, foreign investment, and international trade are two key
    Growth and Change DOI: 10.1111/grow.12246
    Vol. 49 No. 2 (June 2018), pp. 394–396

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    Subjects
    Asian Studies