A New Chapter in Value Chain Connections between China and Europe: Are Advanced Services a New Area of Chinese Influence in European Manufacturing?

Abstract

One way to mark the presence of Chinese companies in Europe is the servicification of manufacturing with advanced services such as information and communication (ICT). Therefore, the article aims to identify the intensification of the influx of Chinese ICT services in the manufacturing of European economies, especially regarding industries dealing with transport equipment and computers, electronic and electrical equipment. A key research question going forward is: whether technological developments in China affect the country's servicification links with European manufacturing in advanced services. Applying input-output models, the study confirmed that China is more intensively servicing manufacturing in Europe with its ICT services, and the intensity of this servitization increases with the stronger position of a value-added country in GVCs.