China has to reshape global value chain

As the world undergoes unprecedented changes, China faces risks it has not encountered in its four decades of reform and opening-up. The trade war the United States has launched against China is set to disrupt and reshape the global industrial chain, value chain and supply chain. As a result, China has to make a new plan to further integrate with the world market - currently dominated by multinationals - in a bid to achieve industrial upgrading.

The trade war will disrupt the industrial, value and supply chains in three ways. First, the spillover effects of the trade war will fester and alter the course of development of the industrial, value and supply chains. Second, as the trade war intensifies, it could even sever these chains. And third, the US could take even more radical measures to contain the rise of China's high-tech sector.

To rise to the challenge, China must bolster its science and technology sectors, increase its national strength by focusing on innovation, and prioritize the development of pilot free trade zones.