Zhang Erzhen: The Risk of China's Industries in the Middle and High-end Global Value Chain and Its Prevention

Release time:2018-08-22Author: Zhang Erzhen

Promoting China's industries to move towards the middle and high end of the global value chain is one of the important strategic goals of China's opening up development in the new stage. However, since the upgrading of the value chain involves the transformation of comparative advantages, when traditional advantages are constantly weakening and new types of comparative advantages have not yet been established, the "vacuum period" of comparative advantages may trigger a "disruption risk" in industrial development. Therefore, in the process of advancing China's industries toward the middle and high end of the global value chain, it is necessary to be alert to the occurrence of such risks and take effective preventive measures to maintain medium-high economic growth of China's economy. Facing the dilemma during the replacement of old and new advantages, we must adopt new ideas and new strategies to prevent risks: firstly, be in line with the realistic stage of China's development; secondly, focus on the construction of industrial ecosystem; thirdly, emphasize the cultivation of new types of comparative advantages; fourthly, follow the new trend of the evolution of division of labor in the global value chain; fifthly, build an open new system to cultivate and construct new types of comparative advantage.