China is a success story of inclusive trade growth as a result of its participation in Global Value Chains (GVCs). It is in transition from a processing and assembly hub towards an innovation centre, and is becoming a regional supplier of research and development (R&D) intensive parts and...

In his 1995 paper for the twenty-fifth anniversary of the Brookings Papers on Economic Activity, Krugman identifies several new aspects of modern world trade. One of them is the ability of producers to "slice up the value chain", breaking the production process into many geographically separated...