Discussion papers of the WZB serve to disseminate the research results of work in progress to encourage the exchange of ideas and academic debate. Inclusion of a paper in the discussion paper series does not constitute publication and should not limit publication in any other venue. The discussion papers published by the WZB represent the views of the respective authors and not of the institute as a whole.

The relationship between digitalization and the governance and geographies of global value chains has not been explored systematically. This contribution discusses how digitalization affects the variables that determine the localization of manufacturing, i.e. the substitution of work through automation, the deepening of the customer–producer relationship, the rationalization of distribution through digitalized logistics networks, and the increased modularization of supply chains through standardization and ‘platformisation’. The results of the theoretical exploration defy expectations of a straightforward ‘reshoring’ of production through the combined effects of automation and benefits through a co-localization of companies within their target markets. Tendencies that would support a stronger integration of production in advanced economies are instead being undercut by ongoing countertrends towards fragmentation. The contradictory tendencies of a geographical integration of manufacturing and target markets on the one hand and geographical fragmentation through sophisticated supply-chain organization on the other will affect the technologically facilitated processes of value chain restructuring in a sector-specific manner.

Based on a review of divergent interpretations of migrant-worker protests in China, this article analyzes strike patterns during labor struggles in the summer of 2010. The analysis reveals (1) a shift toward more offensive demands for wage increases and (2) a high level of strike contagion. While these elements were evident to some extent in earlier struggles, the authors see their specific combination in 2010 as an indicator of an ongoing process of "class formation." The strikes were centered on auto supplier factories, however, and this shows the limitations on cross-sector protest due to the fragmented conditions in China's heterogeneous industrial structure and a continuing ban on independent organization. Taking a broader perspective on the peculiarities of the strike movement, the authors discuss the impact on the government's comparably permissive stance toward the strike movement. This stance created favorable conditions for the proliferation of strikes. Attempts by state authorities to institutionalize worker conflict, while legitimizing the demand for higher wages, fall short of granting rights to organize independently and bargain collectively. Instead an opening has been created for worker militancy rather than integrating it into some authoritarian form of social compromise.China's economy in the last decade has grown in historic proportions, but living standards have not, at least not for the migrant workers who constitute more than half of the urban workforce. One result of this disparity is that over the last decade protests from below have increasingly constituted a challenge to the government. A series of strikes in 2010, the culmination of worker unrest over Critical Asian Studies

No abstract

In this article we analyse the conditions for industrial upgrading in the Chinese LED industry, which proactive local state policies and expanding domestic markets have greatly facilitated. State initiatives provoked overinvestment, but eventually led to the emergence of competitive domestic enterprises. Simultaneously, firms benefited from a growing domestic market on which they outcompeted foreign companies in mid‐price segments. The combination of these factors accounts for the peculiarly Chinese upgrading experience. Neither the resources provided by a new version of the ‘developmental state’ nor domestic market growth alone can explain the Chinese players' success. Based on these results, and given that the emerging economies have become the most important markets for certain consumer goods – a development that (local) industrial policies for industrial upgrading can influence – we provide further proof that it is necessary to rethink the export‐led upgrading paradigm in theories of globally dispersed production.