Liu Zhibiao: The Endogenous Evolution of the Global Industrial Chain from the Medium and Long Term

Release time:2020-05-29Author: Liu Zhibiao

In the short term, the global industrial chain in the spread of the epidemic may be beneficial to China, but in the medium and long term, the situation may not be so. The trend may turn inward. In the past, multinational companies pursued the concept of globalization that they take the world as their factory and the global market as their pasture. This concept may change in the future. While considering economic efficiency, multinational companies may also take the pursuit of industrial security and autonomy and control as an important standard for the spatial allocation of industry.The global industrial chain that China participates in will evolve in two directions in the future: one is from the vertical perspective, the global industrial chain tends to shorten, which is a trend of vertical integration. Another trend is that the horizontal division of labor tends to agglomerate regionally.The trend of the internalization of the industrial chain may damage the interests of the international division of labor, but it may be conducive to improving the degree of economic security, which is a contradiction. Countries should focus their policies on supporting the development of global industrial chain clusters. First, we should create a professional service environment and increase industrial chain business canvass. Second, we have to strengthen patent strategy, intensive research and development investment. Third, we should also improve income distribution and rely on domestic economic circulation. Fourth, we should encourage mergers and acquisitions and take collective actions.