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Background


The development of global value chains (GVCs) is one of the major factors of trade growth and economic globalization in the past 30 years. It has reshaped global production and trade models with increased efficiency and inclusiveness. The extensive research in recent years has confirmed the close relationship between participation global production chains and fast economic growth. As a result, governments around the world increasingly identified GVCs as one of their priorities in designing economic and social policies.

As a policy instrument, the promotion of integration with GVCs is inter-related with a  number of other dimensions faced by policy-makers. Among which are investment policy, trade finance, development of small and medium-sized enterprises (SMEs) and e-commerce. Although policies supporting GVC integration normally share the same goals with these policies, how they might be formulated and implemented in reality are not always straightforward and obvious. For example, policies encouraging foreign direct investment will facilitate the participation of global production activities; and, in turn, the deep integration with GVCs will bring more investment. However, investment policies in many countries serve also as tools for dealing with other priorities, such as industrialization and employment . How to keep balance among different policy dimensions is an important task worth deep reflections and discussions.

GVCs provide valuable new market opportunities for businesses, in particular SMEs, who are most able to respond and adapt to the rapidly changing global demand. A critical issue for policymakers, however, is  how to provide  a level playing field for the SMEs to compete and how to support them with capital and human resources. Similarly, the rapid development of e-commerce has provided important opportunities for enterprises to further streamline their business model, upgrade and further integrate with GVCs. How to facilitate this process crystallize these opportunities is a useful question to be answered.

The objection of this Global Value Chain Summit is to reinforce the dialogue between the business community, researchers and policy makers on the development of global value chains, with a specific objective to identify policies, at both national and international level, that will promote growth through globalized production, trade, investment and innovation. Experts from  the business community, international organizations, and research institutions will identify emerging patterns and trends of the recent GVC development; discuss issues and problems faced by businesses; and, more importantly, explore possible policy framework that would facilitate the further development of GVCs.

In addition, the world-wide chain which shapes the global economy is firmly rooted in the local realities. Understanding the evolution of business practices and models with local and national aspects is fundamental. The representatives of local businesses and government will share China’s experience in participating in the GVCs and in developing supportive policies.

With these objectives in mind, the Global Value Chain Innovation Development Summit invites experts from the business community, international organizations, and research institutions to explore the above mentioned questions and identity a roadmap for strengthening the interaction between them. The panels will address specific topics related to the development of GVCs and frame works to facilitate the further development.