Research on the Effect of China's Digital Economy on Global Value Chain

Abstract

It is a fact that as a result of the developing new round of scientific and technological revolution and industrial transformation, nations all over the world must concentrate on the digital economy if they are to seize new opportunities for development and establish new competitive advantages. Businesses now face possibilities and difficulties as they deal with a new cycle of global value chain reconfiguration. The integration of digital technology has changed how individuals participate in global value chains and how they are geographically organized. As a new economic structure, it can encourage a significant driving force for economic and social progress and is a key factor in altering a nation's competitiveness. Additionally, it dramatically alters the geographical configuration of the value chain's division of labor to facilitate the growth of digitization, services, disintermediation, and manufacturing customization. This paper examines the status of China today, the participation and development of the digital economy, as well as the role and impact of the digital economy on China's global value chain. The study mentioned above is used in this paper to draw conclusions on the uneven development of China's many regions and the lack of adequate data governance, as well as to suggest workable solutions.