The Reshaping of China's Industry Chains. By CICC Research, CICC Global Institute. Springer, 2024

Abstract

This book examines the fundamental forces and strategic imperatives reshaping China’s position within global industry chains, shifting the national focus from "efficiency first" to a critical balance between efficiency and security. Driven by increasing geopolitical risks, "deglobalization," and technological non-neutrality, the book argues that China must leverage its unparalleled economies of scale to build resilience and enhance its irreplaceability in the global supply network. A key advantage is its massive domestic market, which can serve as a potent engine for growth and innovation, especially for digital platform companies. The analysis details how industrial policy is returning to the spotlight, advocating for a "dual-pillar national system" where big, state-supported companies mitigate vertical risks (dependence on key upstream technologies) through integration, while diversified small and medium-sized enterprises (SMEs) mitigate horizontal risks (supply chain disruption) through decentralization and competition. Sector-specific analyses cover critical areas—from raw materials security to the green transformation, and the leap forward in high-end equipment and new energy vehicles—providing a comprehensive roadmap for navigating the complexities of the new global economic landscape.

Keywords. Global Industry Chains (GICs); Deglobalization and Geopolitics; Economies of Scale (China); Supply Chain Security; Industrial Policy.

JEL. F62; L23; O25; R38; F13.