East Meets West: The Rise of Chinese Information and Communication Technology Servicification in European Manufacturing

Abstract

The article aims to show the changes in shares of added value coming from Chinese information and communications technology (ICT) services to European manufacturing in total value-added inflows (the servicification of European manufacturing with Chinese ICT services). The study focused on Chinese ICT servicification of European transport equipment and computer, electronic, and electrical equipment. The study tried to answer two questions: (a) whether the servicification of European manufacturing with Chinese ICT services increases, expressed by the growing share of Chinese value-added among partners providing services to European manufacturing and (b) whether an economy's relative position and participation in global value chains (GVCs) has impact on the servicification of European manufacturing with Chinese ICT. The study proved that the shares of inflows of Chinese ICT into European manufacturing have increased. Moreover, both higher relative position and participation in GVCs boost the servicification of European manufacturing.