global value chain participation and income inequality:implications...
title:global value chain participation and income inequality:implications for china’s common prosperity policy
author:yu jiantuo xu xiaolong
since the 1980s，due to rapid growth in cross-border trade and investment，along with the advancement of information and communication technologies and reduction of transportation costs，global trade patterns have been largely changed. with rising vertical specialization and intra-industry trade，the global production network has been dramatically expanded，involving more economies and producers in value creation and distribution. the expansion of the global value chain in the golden age of globalization has made a substantial contribution to the overall economic growth of the world.
china has benefited greatly from the engagement in the global value chain over the past four decades. owing to the reform and opening-up policy，china has been deeply integrated into the global economy and emerged as a systematically important player in global trade. nowadays，china is the largest trading partner of more than 120 economies around the world. according to the general administration of customs of prc，in 2021，the total volume of china's imports and exports exceeded us$6 trillion. in addition，according to data released by the united nations conference on trade and development (unctad)，china is also one of the largest fdi recipients and ofdi providers. in 2021，the value of fdi inflows to china reached approximately us$181 billion，and china’s fdi outflows amounted to us$145 billion，both ranked second in the world. benefiting from increasing economic integration with the global economy，china has been one of the most successful countries in economic growth in the past four decades，with gdp per capita rising from about us$155 in 1980 to us$12,551 in 2021.
