the contemporary world value chains
There is an increase in the contemporary world value chains, that is re-shaping the structural flow of the global trade. China is no exception as it decided to transit to export manufacturing within the context of global supply chains. Rodrik (2006) went ahead to characterize this critical decision. He categorically claims that China, as a country, has achieved a tremendously high level of economic sophistication in comparison to other nations of the world. This is attributed to foreign enterprises and proceeds that are a result of exports.
According to Rodrik, China is specialized in exporting highly refined quality goods that are incomparable to its income levels. However, the quality of products shipped has not been thoroughly examined for co-relation with the supposed sophistication of China’s exports. Again, the average income of China about the exports they make has been wrongly used in estimating her capability of selling out to other countries. The two biases once looked into, would serve as a means of further growing the economy of China.
China currently being recognized as the world’s highest manufacturing hub, as she has continued to scale up her capacity in literally every sector of industries existent. There common expression “China makes, the World Takes,” is demonstrated by the main ports in Shenzhen and Hong Kong. In 2019, cargo ships left the harbors with 40 million of the standard 20-foot long metal containers in trucks, which was less than half exports of China. In return, millions of dollars are pumped into her economy. Most of the time, China’s worktime factories are functional for twelve straight hours with the workers having two meal-breaks in between. Such is the characteristic of a booming economy with an upward trajectory, according to Rodrik.
In summary, Rodrik believes that China is a nation with a complex economy compared to any country globally. Rodrik claims that a booming economy like that of China has its factories up running from 24 hours a day, with workers working in shifts of 12 hours, leading to more production, hence more exports. The global supply chain would face a catastrophe without the link of China with other complex global networks. Global commodity chains are kept running by the efforts of China.