Digital Trade Rules and the Position of Chinese Enterprises in the Global Value Chain

Wang Yindan, Hou Junjun and Wang Zhenguo ()
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Wang Yindan: School of Economics and Trade, Hunan University, Hunan, China
Hou Junjun: Doctoral Supervisor at School of Economics and Trade, Hunan University, Hunan, China
Wang Zhenguo: Postdoctor at School of Economics and Trade, Hunan University, Hunan, China

China Finance and Economic Review, 2023, vol. 12, issue 3, 106-128

Abstract: Digital trade rules and higher positions of enterprises in the global value chain (GVC) are both important topics in the context of high-quality economic development. This paper refers to the data of RTA digital trade rules concluded by China in the TAPED database in 2000–2014 and the matched data in the WIOD database, the China Customs Import and Export Database and the China Industrial Enterprise Database to investigate the effects of digital trade rules on Chinese enterprises as to their ascending GVC positions. It finds that signing the RTA digital trade rules can steadily and significantly promote the position ascendance; compared with the digitalization rules on trading objects, signing the digitalization rules on trade modes produces greater effects of driving up the positions, which are realized mainly via the three channels of advancing cross-border flow of R&D factors, promoting corporate digital transformation, and improving professional management. Digital trade rules that are horizontally broader and vertically deeper are in greater favor of Chinese enterprises for ascending in the global value chain, which is especially evident among those in digital industry and processing trade. During the negotiations of digital trade rules, it’s imperative to pay close attention to the rules on e-commerce cooperation, awareness of e-commerce importance, intellectual property protection, attempts in big data-related trade in goods, and cross-border data flow, so as to secure the core interests of Chinese enterprises in gaining higher positions. This paper offers great policy implications as to how to sign digital trade rules by China in the future and how to select partners in greater support for Chinese enterprises to ascend to the middle and high end of the global value chain.

Keywords: digital trade rules; corporate position in the global value chain; horizontal width; vertical depth (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:bpj:cferev:v:12:y:2023:i:3:p:106-128:n:4

DOI: 10.1515/cfer-2023-0018

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