WT32 – The position of China and Europe in the global system of production and trade

Workshop Presentation

The economic globalisation that we have witnessed since the 1950s, with a marked acceleration at the end of the 1970s, establishes a form of international division of labour. Certain countries, regions or cities control financial services, information systems and complex technologies. Others, conversely, benefit, if you can call it that, from a low standard of living and wages to become the workshops of the world. Yet others confine themselves or find themselves confined to the exploitation of their natural resources.

The hierarchy of living standards and human development to a large extent reflects this international division of labour. It introduces a form of hierarchy of the prestige of wealth and development between nations. But this international division of labour is not set in stone. On the contrary it is in perpetual transformation and one of the most constant strategies of countries that have recently entered the industrial and post-industrial economy is to use the experiences gained in an initial phase of economic development to position themselves progressively in the most prestigious, most sophisticated or most lucrative niches.

This division of labour occurs not only between nations, but also between regions, as and when an economic system advances. Indeed in China, the industrial boom that began on the coast, largely stimulated by the presence of foreign international firms, notably European ones, is beginning to be transferred to inland China, Vietnam and elsewhere. Chinese companies are becoming more independent and are beginning to conquer markets abroad. Chinese production industries on the coast are moving towards products of higher added value, incorporating more technologies or even towards design.

Can the international system work towards a balance? Does the gradual increase in wages and technological level in coastal China have to progressively lead to a balance of the same type as that which exists in European countries? Or will the tensions grow worse because of greater competitiveness with the European economy, notably among the new Member States which are directly in competition with the Chinese economy? These are the questions that will be discussed in this workshop.