Bilateral Political Relations with the United States and the Shortening of Global Value Chains

DOI

10.2991/978-94-6239-758-3_21How to use a DOI?

Keywords

Global value chain restructuring; Shortening of chains; Value chain length; Bilateral political relations

Abstract

Based on the bilateral political relationship index constructed from the voting data of the United Nations General Assembly, this paper systematically examines the impact of political relations with the United States on the length of global value chains (GVCs). The study finds that a distant political relationship between a country and the United States significantly curtails its participation in the length of GVC links, promoting the shortening of GVCs. This conclusion remains robust after addressing endogeneity issues using instrumental variable methods and PSM-DID. Mechanism analysis indicates that the distancing of political relations with the United States mainly leads to the shortening of value chains through two channels: trade structure and investment layout. Additionally, the research further reveals that under geopolitical pressure, enterprises often face a strategic trade-off between “chain length” and “chain resilience”. The findings of this paper help clarify the mechanism by which bilateral political relations affect the global production system, providing theoretical and practical references for building more resilient and diversified regional industrial chains and responding to complex geopolitical environments.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Ji Zhang
AU  - Chenghao Wang
PY  - 2026
DA  - 2026/09/08
TI  - Bilateral Political Relations with the United States and the Shortening of Global Value Chains
BT  - Proceedings of the 2026 7th International Conference on Management Science and Engineering Management (ICMSEM 2026)
PB  - Atlantis Press
SP  - 205
EP  - 218
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-758-3_21
DO  - 10.2991/978-94-6239-758-3_21
ID  - Zhang2026
ER  -