From traditional to digital servicification: Chinese services in European manufacturing

Abstract

The study investigates if the advancements in the domestic servicification of manufacturing reflect the rise in Chinese servicification within the manufacturing sectors of its trade partners. In a broader context, the article verifies whether China is following global trends related to servicification and digitalization in GVCs with Europe. The research reveals a growing role for Chinese services in both developed and developing European economies, with a higher absorption observed in Western European countries due to their level of development. However, the study did not fully confirm that China is strengthening its role in European digital GVCs. The Chinese strategy of joining advanced GVCs is two-pronged, with heavy servicification with traditional services and considerable variation in the servicification with digital services.