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Chinese Services Gaining Significance in Global Production Chains

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  • Heli Simola

    (Bank of Finland Institute for Economies in Transition (BOFIT) P.O. Box 160 00101 Helsinki, Finland Author email: heli.simola@bof.fi)

Abstract

China has been a key participant in international fragmentation of production during the last decades. China has specialized mainly in labor-intensive manufacturing, but is striving to shift toward higher value-added production stages and production. At the same time, during recent decades, services have contributed increasing shares of valued-added to products produced through global production chains. For this reason we examine the evolving role of Chinese services in international production chains. Our results suggest that Chinese services account for an increasingly large share of production for the domestic market, and more recently have made increasing contributions to foreign production chains, which suggests that Chinese production is shifting to activities in production chains that are associated with higher value-added.

Suggested Citation

  • Heli Simola, 2018. "Chinese Services Gaining Significance in Global Production Chains," Asian Economic Papers, MIT Press, vol. 17(2), pages 50-64, Summer.
    • Handle: RePEc:tpr:asiaec:v:17:y:2018:i:2:p:50-64
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    Cited by:

    1. Simola, Heli, 2019. "Evaluating international impacts of China-specific shocks in an input-output framework," BOFIT Discussion Papers 17/2019, Bank of Finland Institute for Emerging Economies (BOFIT).
    2. repec:zbw:bofitp:2019_017 is not listed on IDEAS
    3. Simola, Heli, 2023. "Trends in Chinese value chains 2018-2022," BOFIT Policy Briefs 14/2023, Bank of Finland Institute for Emerging Economies (BOFIT).
    4. Simola, Heli, 2021. "The impact of Covid-19 on global value chains," BOFIT Policy Briefs 2/2021, Bank of Finland Institute for Emerging Economies (BOFIT).
    5. Simola, Heli, 2020. "CO2 emissions embodied in EU-China trade and carbon border tax," BOFIT Policy Briefs 4/2020, Bank of Finland Institute for Emerging Economies (BOFIT).
    6. Simola, Heli, 2019. "Evaluating international impacts of China-specific shocks in an input-output framework," BOFIT Discussion Papers 17/2019, Bank of Finland, Institute for Economies in Transition.

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