Page 45 - Azerbaijan State University of Economics

Li Ting: The Impact of Artificial Intelligence and Robotics on International Trade: A Study
on the Reshaping of the Global Value Chain and the Transformation of Trade Patterns

while countries at the low end are the opposite. ③ China is in the rising stage: China's
robot density and high value-added export share are gradually increasing, indicating
that its position in the global value chain is rising.
GVC 1.0. The traditional global value chain (GVC 1.0) was primarily built upon the
principle of “comparative advantage,” wherein countries assumed distinct roles in
global division of labor based on their resource endowments, labor costs, and other
factors. Developed countries typically controlled high-value-added segments like
design, branding, and R&D, occupying the upper reaches of the value chain.
Developing countries, meanwhile, handled processing, assembly, and basic
manufacturing, positioning themselves at the lower end. Under this model,
international trade centered on the cross-border flow of physical goods, forming a
global production collaboration system dominated by goods trade.

GVC 2.0. With the widespread application of artificial intelligence, the global value chain
is gradually evolving into a new system centered on technology, data, and algorithms—the
Global Value Chain 2.0. In this new phase, dominance shifts from traditional resource and
labor advantages to technological capabilities and digital sovereignty, with technology, data,
and algorithms becoming the key to controlling the value chain. A new global division of
labor system is consequently emerging. Technologically advanced nations control AI
platforms, model development, and software/hardware standard-setting, occupying the
apex of the global value chain. Smart manufacturing nations deeply integrate AI with
automation to build next-generation industrial hubs. Service-providing nations transition
from labor exports to“intellectual exports”by remotely delivering digital services via AI
technology. Moreover, international trade patterns are undergoing fundamental shifts,
evolving from single-dimensional goods trade toward a tripartite integrated model of
"goods + services + data.”Data flows have emerged as a key element alongside physical
goods and services, propelling global value chains into a new era of digitalization and
intelligence.

Prospects and Challenges. In the process of reshaping the global value chain,
artificial intelligence technology has brought new development opportunities and
triggered a series of structural challenges.

From the perspective of opportunities, first, the proportion of high value-added links in
the global value chain is rapidly increasing, and knowledge-intensive links such as
design, algorithms, and platform operations have become new growth engines.
Secondly, artificial intelligence provides developing countries with the opportunity to
"overtake on the curve". With the help of digitalization and intelligent means, these
countries may skip the traditional industrialization stage and achieve leapfrog

45