China’s New Development Strategies Upgrading from Above and from Below in Global Value Chains Edited by Gary Gereffi · Penny Bamber · Karina Fernandez-Stark China’s New Development Strategies · · Gary Gereffi Penny Bamber Karina Fernandez-Stark Editors China’s New Development Strategies Upgrading from Above and from Below in Global Value Chains Editors Gary Gereffi Penny Bamber Department of Sociology Duke Global Value Chain Center Duke University Durham, NC, USA Durham, NC, USA Karina Fernandez-Stark Duke Global Value Chain Center Durham, NC, USA ISBN 978-981-19-3007-2 ISBN 978-981-19-3008-9 (eBook) https://doi.org/10.1007/978-981-19-3008-9 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 This work is subject to copyright. 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Theregisteredcompanyaddressis:152BeachRoad,#21-01/04GatewayEast,Singapore 189721, Singapore Contents China’s Evolving Role in Global Value Chains: Upgrading Strategies in an Era of Disruptions and Resilience 1 Gary Gereffi, Penny Bamber, and Karina Fernandez-Stark Digital Technologies and China’s New Development Strategies China’sIndustrialInternet:Platform-BasedManufacturing and Restructuring of Value Chains 33 Boy Lüthje Alibaba’s Distribution-Centered Approach Towards the Industrial Internet: A Chinese Version of Industry 4.0? 61 Lea Schneidemesser and Florian Butollo Subjective Social Upgrading and Downgrading of Technical Workers in China’s High-Tech Economy: A Company Case Study 85 Xia Yan Active Local Governments and Firm Upgrading in China Active Local Governments and New Chinese Firms in Emerging Industries in Kunshan and Dongguan 113 Xun Zhang, Gary Gereffi, and Cassandra C. Wang v vi CONTENTS Whither Global Value Chains: The Shifting Role of Taiwanese FDI in Mainland China 141 Michael Murphree Industrial Upgrading from Below: Can Chinese Local Manufacturing Firms Reconfigure Global Value Chains? 167 Wei Zhao Upgrading of Chinese Domestic Firms in Advanced Manufacturing: Evidence from Industrial Robots and High-Tech Medical Devices 195 Jing Zhao and Gary Gereffi China’s Shifting Role in Regional and Global Value Chains China’s Shifting Roles in Asian Electronics Trade Networks: Implications for Regional Value Chains 237 Joonkoo Lee The Reconfiguration of Global Value Chains in the Digital Economy: Recent Trends and China’s New Agenda 267 Ying Qiu Notes on Contributors BamberPenny isaglobalvaluechainspecialist,withmorethanadecade of experience working at the Duke Global Value Chains Center. She has contributed significantly to the development of the global value chain framework, particularly with respect to the intersection between interna- tional business and country-level development policy. She has published extensively, contributing to numerous books, reports, and journal arti- cles on economic growth and development, technology and skills for the future, and the role of gender among others. Penny has consulted and provided policy analysis widely for national and international orga- nizations, including the World Bank, the Organization for Economic Cooperation, UNCTAD, ILO, the African Development Bank, and the Inter-American Development Bank. Dr. Butollo Florian is head of the research group “Working in highly- automated digital-hybrid processes” at the Weizenbaum Institute for the NetworkedSocietyandleaderoftheresearchproject“IndustrialInternet Platforms, Restructuring of Production Networks, and Work in China andGermany”bothatBerlinSocialScienceCenter.Hisresearchinterests are digitalization and work, work in global production networks, and the transformation of work in China. Fernandez-Stark Karina is an international consultant and a Duke Global Value Chains Center affiliate, who has led numerous research projects related to economic development and competitiveness around vii viii NOTESONCONTRIBUTORS theworld.ShehasconsultedfortheAfricanDevelopmentBank,ECLAC, Inter-American Development Bank, OECD, UNCTAD, and the World Bank, among others. Together with Gary Gereffi, Karina authored the highly cited book Global Value Chain Analysis: A Primer. She has published several research reports and articles on industrial upgrading and social and economic development. Her research continuously brings a policy focus on advising country governments on different continents. KarinahasconductedGlobalValueChainsworkshopsinAfrica,Asia,and the Americas. Gereffi Gary is Emeritus Professor at Duke University in Durham, NC, and Founding Director of the Duke Global Value Chains Center. He is one of the originators of the global value chains framework, and he has published over a dozen books and numerous articles on globalization, industrialupgrading,anddevelopmentstrategiesinvariousregionsofthe world. Recent books include Handbook on Global Value Chains (Stefano Ponte, Gary Gereffi, and Gale Raj-Reichert, co-editors) (Edward Elgar Publishing, 2019); Global Value Chains and Development: Redefining the Contoursof21stCenturyCapitalism (CambridgeUniversityPress,2018); and Global Value Chains in a Postcrisis World: A Development Perspective (Olivier Cattaneo, Gary Gereffi, and Cornelia Staritz, co-editors) (The World Bank, 2010). Lee Joonkoo is Associate Professor of Organization Studies, School of Business at Hanyang University in Seoul, Republic of Korea. Prior to joining Hanyang, he was a Postdoctoral Research Scholar at the Social Science Research Institute at Duke University from 2011 to 2012. He was a visiting research fellow at Seoul National University Asia Center from 2014 to 2015. His main areas of research include globalization and development, specifically global and regional value chains, value chain governance, and economic and social upgrading in apparel, electronics, andcultural/creativeindustries,focusingonAsia.Heco-authoredabook titled Mobile Asia Capitalisms, Value Chains and Mobile Telecommuni- cation in Asia (Seoul National University Press, 2018). His work has appeared in Proceedings of the National Academy of Sciences of the United States of America, Journal of Business Ethics, Industrial and Corporate Change, and International Labour Review among others. Prof. Lüthje Boy is Director of the Technology and Industry Research Center at the Institute of Public Policy (IPP) at South China University NOTESONCONTRIBUTORS ix of Technology in Guangzhou. He held the Volkswagen Endowed Chair Industrial Relations and Social Development at Sun Yat-sen University School of Government from 2015 to 2019. Lüthje is a noted expert on global production networks and the digitalization of manufacturing in the electronics, automotive, and other manufacturing industries. He is the author of numerous papers and books on these topics as well as on industrial relations in China. He received his Ph.D. from the Univer- sity of Frankfurt in Germany in 1991, where he became an assistant professor. Since 1999, he has worked as a senior research fellow at the Frankfurt Institute for Social Research. He held appointments as visiting scholar at the University of California Berkeley, the East-West Center, Honolulu, Hawaii, Renmin University of China in Beijing, the Global Labor University and others. Murphree Michael is Assistant Professor of International Business in the Darla Moore School of Business at the University of South Carolina. He earned his Ph.D. in Science Technology and International Affairs at the Georgia Institute of Technology in 2014. Professor Murphree’s primary research interests include global value chains, industrialization, andeconomicupgrading,innovationinemergingeconomies,technology standards,andintellectualpropertyrights.HespeaksfluentMandarinand has conducted field research in the Greater China Region since 2007. His China-based research has been widely published and his 2011 book (co-authored with Dan Breznitz), The Run of the Red Queen: Govern- ment, Innovation, Globalization, and Economic Growth in China, was the winner of the 2012 British International Studies Association Susan Strange Best Book Award and bronze medalist for the 2012 Axiom Business Book Award for International Business/Globalization. Schneidemesser Lea is a research fellow at the Weizenbaum Institute for the Networked Society where she is part of the research project “Indus- trialInternetPlatforms,RestructuringofProductionNetworks,andWork in China and Germany” and at the Max Weber Center at Erfurt Univer- sity where she researches Chinese outbound foreign direct investment (OFDI) in Germany and the European Union (EU). Her research inter- estsarethedigitalizationandapplicationofplatformsinindustrialsectors, workinglobalproductionnetworks,andChineseOFDIinGermanyand the EU. x NOTESONCONTRIBUTORS Dr. Wang Cassandra C. is Professor in the School of Earth Sciences, ZhejiangUniversity.Herresearchinterestsincludetransboundaryknowl- edge/technology spillovers and firm innovation, industrial and regional development, e-commerce adoption, and rural development, etc. Her work widely appears in the peer-reviewed international journals such as Journal of Economic Geography, Economic Geography, Journal of Rural Studies, International Business Review, Environment and Planning A, Urban Studies, among many others. Yan Xia is a postdoctoral fellow at the School of Sociology and Anthro- pology of Sun Yat-sen University. She gained her Ph.D. from the University of Hong Kong. Her research interests include the gover- nance of R&D in China’s high-tech industry, the work and social mobilityofhigh-skilledknowledgeworkers,andChinesegovernanceand consumption. Qiu Ying is Associate Professor and Associate Dean of the School of Economics, Jiangxi University of Finance and Economics. She is also a postdoctoral fellow at the Research Institute for Global Value Chains, University of International Business and Economics. Her main research areas are the digital economy and global value chains. She has published widely both within China and abroad. She has led and participated in multiple national, provincial, and ministerial-level research projects in China, including for the National Natural Science Foundation of China. She is the recipient of several prestigious awards, including the Chinese Enterprises’ Reform and Development Achievement Award. She holds leadership positions in a number of local government and academic asso- ciations, including the Deputy Secretary-General of China Digital Trade 30 Forum. Zhang Xun is currently a researcher at a non-governmental organization (NGO) in China. He was previously a fellow at Teach for China from 2020 to 2022 and earned his master’s degree in public policy from Duke University in 2020. His research interests include global value chains and international development. Zhao Jing is an Associate Professor in the Research Institute for Global Value Chains at the University of International Business and Economics (UIBE) in Beijing. She received her Ph.D. degree from Tsinghua University. She was a visiting scholar at UC Berkeley and the Organi- sation for Economic Co-operation and Development (OECD) in Paris.