Global Value Chains in Asia at a New Stage of International Competition

Abstract

One of the characteristic features of international trade in modern times is the structural changes in its key components under the influence of multifaceted and complex factors: geopolitical and geo-economic tensions, the consequences of the pandemic, the advancement of new areas of scientific and technological developments, climate change, etc., which have caused a reorientation of trade, investment and logistics flows. Developing countries in Asia consider global value chains (GVCs) as one of the main forms of maintaining the dynamism of international trade; they are developing their new patterns that correspond to the ongoing changes. With developing economies facing enormous risks due to GVC failures, competition for markets and country diversification in Asia are increasing, since along with China, new production and logistics centers such as India, Vietnam, and Japan are emerging, Moreover, with the integration of GVCs in Asia, which is particularly manifested in the activities of ASEAN and RCEP, there is a tendency imposed by Western countries to fragment the mechanism of interconnections and exacerbate unfair competition that has a negative impact on the global trade system with long-term consequences for future cross-border flows of trade, investment and technology. In this regard, the importance of the BRICS concept is growing, which is becoming a new format for interregional interaction aimed at enhancing the stability and sustainability of world trade and strengthening the position of developing countries.