An analysis of China’s global industrial competitive strength based on vertical specialization

Abstract

At the beginning of the 1990s, China witnessed an increase in its international competitive strength in technology-intensive and capital-intensive industries, and a decrease in strength in labor-intensive industries. This paper analyzes the effect of vertical specialization on China s international industrial competitive strength, explores how different industries have varying reactions under its implementation, and employs theory to explain the possible causes of these reactions. It is found that vertical specialization can help to strengthen China s global industrial competitiveness, and on that basis, some suggestions are given on how to improve that competitiveness.