Global Value Chains and Trade Patterns: A Comparative Analysis between Developed and Developing Countries

Abstract

With the continuous deepening of economic globalization, the economic interconnections among countries worldwide are increasingly close, making it impossible for any country's development to exist in isolation. The degree of economic interdependence and permeation between countries continues to deepen. In recent years, with the reduction of transportation and communication costs, the "fragmented" production model has rapidly spread globally. More and more goods are no longer produced and sold by a single country but are completed through vertical division of labor cooperation among multiple countries, with each country undertaking different stages of product production. This production model has driven the formation and development of global value chains. The deepening of global value chains has made the mutual influence between international economic cycles increasingly apparent. However, with the rise of the "anti-globalization" sentiment and trade protectionism, especially against the backdrop of the COVID-19 pandemic sweeping the globe and sluggish world economic growth, the external environment facing China's participation in the global value chain division of labor has undergone profound changes. In this situation, how to effectively respond to various risk challenges to maintain the steady and sustainable development of the Chinese economy has become an urgent and important issue that needs to be addressed.