Russian and Chinese strategy of participation in global value chains: case study (the production of led lamps)

Publication type Article
Status Published
Affiliation: Plekhanov Russian University of Economics
Address: Moscow, Russia
Journal nameObshchestvo i ekonomika
EditionIssue 2

In the scientific literature the participation of a country in global value chains (GVCs) is considered from different points of view corresponding to several theories. Proponents of the neoclassical approach argue that participation in the chain brings benefits in itself. The concept of "economic advancement" implies the involvement of some development institutions. To date, a number of empirical studies have accumulated that criticize both approaches. In the paper, the (GVCs) of LED lamps, which are presented on the Russian market, are considered. The obstacles to increasing the added value that Russia faces at each stage are identified, and the main hindrance for domestic companies in this industry is revealed, that is, the impossibility of price competition with Chinese manufacturers. The paper provides an overview of the measures taken by China to develop the LED industry. From the above example, it follows that the goal of China's strategy is not just to increase the added value at each individual stage of production, but to assert Chinese dominance in the entire chain. This problem is solved by establishing control over its most important link and the subsequent transfer of all other stages of production to the territory of China.

Keywordsglobal value chains, economic modernization, lighting engineering
Publication date18.02.2022
Number of characters24759
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