Asia’s production network has developed rapidly since the 1980s. The production networks in East Asia and Southeast Asia, in particular, have highly integrated into the international division of labor and become important links in the global value chain. However, Asian countries’ participation in the production network varies in degree and they’re at the low-end of the value chain, having little effect on the industrial upgrading and structural improvement in those countries. In addition, Asia’s production network faces the problem of uneven development, with Bangladesh, India and Burma having low degrees of participation, impeding the progress of the region’s globalization. Meanwhile, the post-crisis European and American economies grow slowly. Asian economic integration is also slowing down. The global value chain faces uncertainties. Under these circumstances, the Asian economy needs to seek for new growth engines.

Featuring inclusive growth and diversified participation, the 21st-Century Maritime Silk Road can strengthen the interconnectivity of related countries; establish a multi-lateral and all-encompassing cooperation system, framework and international institutional arrangements; create a multi-level cooperation pattern, and facilitate investment and trade liberalization, which will be beneficial to the recreation of Asia’s production network and value chain. It can also promote an international division of labor among industries and products in Asia, add more countries or regions into the network and raise the status of participants in the global value chain so that more countries can share of the benefits of globalization. Interconnectivity among countries along the road, development of multinationals in the region, trade and investment growth under the new cooperation framework will create conditions to rebuild Asia’s production network and value chain. The 21st-Century Maritime Silk Road is strategically oriented to accelerate this process.

Yang Xianming, born in 1953, studied in the Economics Department of Yunnan University, the International Economics Institute of Nankai University, and received a doctor’s degree in economics. He studied in University of Leicester, University of Manchester, Columbia University and University of California-Berkeley as a Visiting Scholar or Senior Visiting Scholar. He is Director of the Development Research Institute of Yunnan University and also a distinguished professor and doctoral tutor. He previously served as Director of the Economics Department of Yunnan University and Director of the Yunnan Provincial Research Institute. He has been engaged in the studies of world economy, international direct investment and development economics.