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Why integrated trade networks matter

Richard Baldwin, during his keynote address of the CEPR’s June 2022 Paris Symposium, presented his latest research on supply chain realities. Using a dataset that shows the level of supply chain integration of all the sectors worldwide, this study shows how deeply implicated China is in the manufacturing sectors of the main manufacturing countries in the world. Baldwin suggests creating an interface that allows these two forms of capitalism – China’s state-led and the West’s market-led capitalism – to live together in a mutually beneficial way.