A series of technological, institutional, and political developments in recent decades have fuelled a significant globalization of production processes across countries. Some of these developments are now in reverse, and the COVID-19 pandemic has added additional challenges for these global value chains. Over the last two decades China's role in these production arrangements has increased dramatically. Many of them are in fact already controlled by Chinese companies, and China is investing in the technologies that will shape the value chains of the future.
How will COVID-19 affect these patterns? Are transnational corporations moving production out of China or building up alternative supply chains? The Chinese economy is now in recovery, while the rest of the world is in the grip of the virus. What will the out-of-sync epidemic curves imply? And more generally, will the trend since the Global Financial Crisis towards global value chains becoming less important continue, or even be accelerated, post-COVID-19?
Pol Antrás, Professor, Economics Dept, Harvard University and Fellow, CEPR.
Davin Chor, Associate Professor, Tuck School of Business, Dartmouth College.
Alicia Garcia-Herrero, Chief Economist, Natixis, and Senior Fellow, Bruegel.
Huang Yiping, Professor, National School of Development, Peking University.
Erik Berglof, Director, Institute of Global Affairs, LSE School of Public Policy and Fellow, CEPR.
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