China’s Evolving Role in the Chemical Global Value Chain

This paper explores China’s integration into the chemical global value chain (GVC) in the past decade through the experience of foreign chemical companies. It examines how the intellectual monopoly of foreign companies help them to exercise control in the GVC, but over time how the challenges of co-evolving with local rival Chinese companies erode that advantage as they face the challenge of maintaining market share by learning to collaborate within a very different innovation environment. It explores these developments by contextualizing the presence of Chinese companies within particular segments of the GVC and through a longitudinal series of company interviews.