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Global value chain, regional trade networks and Sino-EU FTA

Author

Listed:
  • Zhou, Yan
  • Chen, Shumei
  • Chen, Mei

Abstract

As the largest trading partner of China, the European Union (the EU) has maintained a close economic and trade relationship with China over the past several decades. However, the deepening of interdependence between them also brought about concerns over negative impacts of the label ‘Made in China’ on the EU economy. This paper analyses China’s global value chain (GVC) position in relation to those of EU member states, followed by a comparative assessment of trade balance and industrial competitiveness between them from both total trade value and value-added perspectives. Our empirical study provides some interesting findings. First, China’s trade surplus with and industrial competitiveness over EU member states have been overestimated. In addition, changing the value-chain pattern can be the long-term driving force for a China-EU free trade agreement (FTA). Finally, this paper puts forward some suggestions for when and how FTA negotiations can be initiated, mainly from Chinese perspectives.

Suggested Citation

  • Zhou, Yan & Chen, Shumei & Chen, Mei, 2019. "Global value chain, regional trade networks and Sino-EU FTA," Structural Change and Economic Dynamics, Elsevier, vol. 50(C), pages 26-38.
    • Handle: RePEc:eee:streco:v:50:y:2019:i:c:p:26-38
    DOI: 10.1016/j.strueco.2019.04.010
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    References listed on IDEAS

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    2. Aizhi Yu & Huiling She & Jingsheng Cao, 2023. "Evolution of the Spatial Patterns of Global Egg Trading Networks in the 21 Century," Sustainability, MDPI, vol. 15(15), pages 1-16, August.
    3. Felice, Giulia & Tajoli, Lucia, 2021. "Trade balances and global value chains: Is there a link?," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 228-246.

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    More about this item

    Keywords

    Global value chain (GVC); China-EU Free trade agreement; Smiling curve; Social network analysis;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration

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