Acta Geographica Sinica ›› 2022, Vol. 77 ›› Issue (2): 275-294.doi: 10.11821/dlxb202202002

• Centennial Changes and World Geography • Previous Articles     Next Articles

Multi-dimensional proximity, trade barriers and the dynamic evolution of industrial linkages between China and the world market

HE Canfei1,2(), YU Changda1   

  1. 1. School of Urban and Environmental Sciences, Peking University, Beijing 100871, China
    2. Peking University-Lincoln Institute Center for Urban Development and Land Policy, Beijing 100871, China
  • Received:2020-12-15 Revised:2021-09-08 Online:2022-02-25 Published:2022-04-25
  • Supported by:
    National Natural Science Foundation of China(41731278)

Abstract:

As China enters the new normal era, the existing mode of joining into the global production network is confronted with the dual dilemma of internal dividend disappearance and external trade frictions. It is very important to explore the characteristics and driving forces of dynamic evolution of industrial linkages between China and other countries or regions in the world. Based on the world input-output table database from 1995 to 2014, this study depicts the global industrial interdependence network from the national scale using input—output analysis and social network analysis, and focuses on the evolution of China's role and position in this pattern using spatial econometric model. The main findings are as follows: China has become a bridge between East Asia and Southeast Asia and other emerging markets, thus upgrading from an "outsider" to an important hub in the industrial network linking Europe and the United States. However, from 2015 to 2019, the expansion of China's foreign industrial linkages has gradually reached a plateau. From the perspective of supply side, China's resource and manufacturing industries are constantly embedded in the supply side of the global production network. However, the overall external supply capacity of most China's service industry is relatively below global average. In terms of demand, China, as the "factory of the world" and a major country in infrastructure construction, has an increasing global influence in manufacturing and infrastructure. Nevertheless, the international influence of productive services like Transportation, Logistics and Finance has been declining since 2005. The Chinese industries obtain the local added value overall to continue to grow, but the efficiency of the added value capture is low. On this basis, this study explores the influence of multi-dimensional proximities and trade protectionism on China-global industrial linkages and their value added. Among them, the geographical and cognitive proximity has the most extensive influence, while the social and institutional proximities only promote and strengthen the intermediate production linkage with more complex forms of industrial linkages and final demand linkages. However, technical barriers and anti-dumping investigation have weakened China's foreign industrial links. The sanitary and phytosanitary measures have a significant weakening effect on the final demand linkage, but not on the intermediate product production. To sum up, the upgrading of production-oriented service industry and the efficiency of the acquisition of overall added value are the potential directions for the expansion of China's foreign industrial linkages, while the construction of domestic industrial cycle and industrial diversification are the reasonable measures for the expansion of China's foreign industrial linkages.

Key words: multidimensional proximity, trade barriers, value added, industrial linkages, China