Structural changes and trend evolution of China’s integration into global value chains under heterogeneous trade modes

Global Value Chains (GVCs) division of labor has become a crucial link connecting global economies. The increasing fragmentation and specialization of GVCs necessitate a precise evaluation of countries’ participation in international production networks. As structural changes in GVCs intensify, China’s integration into global production, in terms of both participation and position, has undergone profound transformation. This study examines the structural characteristics and temporal evolution of China’s GVC integration from the heterogeneous perspective of general trade and processing trade. It explores inter-industry production linkages and China’s value chain relationships with upstream and downstream trading partners. The key findings are as follows. First, most Chinese manufacturing sectors engage in GVCs primarily through backward linkages, relying on foreign-sourced intermediate inputs in export production, thus remaining in relatively downstream segments of the value chain. Nonetheless, there is a notable upward trend in China’s GVC position, indicating gradual structural upgrading. Second, China’s manufacturing GVC trade is increasingly diversified. The production network has evolved from regional concentration toward broader global diffusion, with deepening interdependence, particularly between China and other developing economies. Third, there has been a marked shift from processing trade to general trade, accompanied by distinct sectoral composition and GVC integration patterns across trade modes. This transformation is reshaping China’s trade regime and the depth of its international cooperation within GVCs. These results provide important policy implications for China’s efforts to optimize its trade structure, enhance its position in global production networks, and promote industrial upgrading through strategic integration into GVCs.