Dynamic mechanism of the growth of Chinese textile OEMs with bidirectional insertion of GVC and NVC

Abstract

Numerous practices indicate that even involved in the low value-added link of global value chain and participate in the international competition in the way of OEM, Chinese textile OEMs still could not avoid the miserable fate of ending up with being captured and confined in the bottom of smile curve by multinational corporations in developed countries, thought they have achieved much growth. Thus, how to get textile OEMs out of the difficulty of “low-value locking” and win a greater say in the international arena is becoming a focal point of our research. Rather than simple infusion of GVC, the scheme of taking root in domestic market and changing production mode of textile OEMs can give some impetus to the continuous expansion and growth of Chinese textile OEMs. The strategy is called bidirectional insertion of GVC and NVC. By obtaining resources and capabilities that they are in need of, companies in the network of GVC and NVC can break through the development bottleneck and achieve effective motive power for their sustainable development.