GVC Linkage of Materials, Parts, and Equipment Industries in China, Japan and Korea

Abstract

Over the past 20 years, CJK's industries in the materials, parts and equipment have grown significantly and led a major change in the global value chain (GVC). The spillover effects of all three countries to each other increased in these industries, and China’s influence has continued to rise throughout the past 20 years. However, CJK represent one of the most sensitive regions to non-economic shocks such as natural disasters and disputes between the United States and China. Therefore, it is necessary to shift from the existing cost- and efficiency-based management of GVCs to more rational GVC management based on supply chain stabilization.