Global value chain upgrading through international standardization: Evidence from China's ICT sector

In the context of accelerating global integration, the concept of global value chains (GVCs) has emerged as a new model of international production and the division of labor. The development of GVCs relies on highly standardized international trade, in which technical standards play a central role in coordinating production processes across borders. This study introduces a novel framework that distinguishes between forward international standardization capability—active participation in standard-setting at early technological stages—and backward standardization capability—passive adoption of existing standards. Using OECD value-added trade data from 1995 to 2020 and evidence from China’s ICT sector, the empirical analysis shows that forward standardization significantly enhances GVC position by boosting value-added and innovation, while backward standardization tends to lock industries into low-value segments. Moreover, technological innovation partially mediates the relationship between forward standardization and GVC upgrading, underscoring the dual role of standards as platforms for innovation and governance tools. Although China serves as the empirical case, the findings provide broader insights for emerging economies seeking to escape low-value-added traps and for advanced economies aiming to maintain leadership in standard-setting within the GVC.