China’s Upgrading in Global Value Chains as a Driver for Structural and Connective Power in a Post-Unipolar World - The Case of Huawei

In the light of the growing significance of Global Value Chains in an increasingly interconnected world, it is fundamental to understand whether there is a significant connection between the position one country enjoys in the International Order and its position in Global Value Chains (GVCs). Taking hereby the case of the People’s Republic of China, the present Research aims at analyzing if this country’s upgrading path in GVCs may be a determinant of its rise in the International Order, and therefore predicting whether Beijing will be able to gain more autonomy in the high value-added sectors of GVCs, and – in turn – whether its higher stance in GVCs will favor China's position in the World Order – herewith defined as one country’s capability of influencing other countries and international organizations’ decisions and actions. For this purpose, the research adopts traditional concepts of International Relations, such as Structural and Connective Power and Post-Unipolarity, and employs them to explain China's process of catching up and upgrading in GVCs. To do so, elaborated research has been conducted on the historical process of China’s upgrading from world factory towards the high value-added segments of GVCs, focusing on industrial policies and on the role of FDIs. Having disclosed that China’s upgrading could be considered a determinant of its exertion of structural and connective power in the international order, the dissertation advances with in-depth research on the impact of the Sino-US trade war and of the Covid-19 pandemic on China’s process of development in GVCs, demonstrating the opportunities and threats created by the two phenomena. Specifically, the research demonstrates that these events constitute a pushing force for China to invest in and foster its development in high-tech sectors, especially in the ICT one, and even more specifically in the chip industry. Hence the thesis conclusion with a case study on Huawei – a pivotal company in both China’s and global ICT scenario –, which finally exemplifies how China’s upgrading in GVCs has been a determinant for its position in the international order, fostering its structural and connective power, as well as how it has been affected – and eventually stimulated – by the aforementioned external phenomena.