Asia-Europe Industrial Connectivity in Times of Crisis

The main objective of this book is to offer an overview and a critical assessment of current connectivity issues in Asia and Europe, seen from an industrial perspective. Critical insights into the contemporary debate on connectivity during times of crisis, which has led to significant economic and social disruptions, are offered throughout the book. European and Asian countries seek to "bounce forward" and not "bounce back" as they navigate the complex economic recovery process. Innovation and investment emerge as critical players to help an economic recovery that shifts towards a more resilient and environmentally friendly approach, to ensure that the world economies stay connected.

The global health crisis has revealed that, more than ever before, ubiquitous connectivity, underpinned by pioneering innovation, is a must. As such, governments worldwide need to ensure that businesses and societies emerge stronger and more resilient from existing and emerging crises by laying solid foundations that help to circumnavigate future disruptions of a global magnitude.

Lucía Morales is an academic and active researcher at Technological University Dublin, Ireland. She has written many articles in the areas of economic development, economic and financial crises, international capital flows, emerging economies and economic growth, with a specific focus on Asian countries.

Sam Dzever is Professor of Management at Institut Mines-Telecom Business School, LITEM, Université Paris-Saclay, Evry, France. His research in the fields of marketing, supply chain management, industrial organization and Asia-Pacific business has appeared in noted international academic journals.

Robert Taylor was formerly Director of the Centre for Chinese Studies and Reader in Modern Chinese Studies at the University of Sheffield, UK. His research interests focus on China's domestic and foreign policy, especially Chinese business management.

Introduction: Connectivity in Euro-Asian Business xi

Robert TAYLOR

I.1 The Chinese conception of a new world order xi

I.2 China as a global economic player in Europe xii

I.3 Sino-American rivalry in Asia xiii

I.4 China’s trade and investment in Asia xiv

I.5 China’s digitalization strategy in Asia xv

I.6 Summary and conclusion xvi

I.7 References xix

Chapter 1 Japan’s Plans for Society 5.0 – A Global Concept, an Isolated Solution or Utopia? 1

Jana-Larissa GRZESZKOWIAK

1.1 Introduction 1

1.2 Achievements in the implementation process 3

1.3 Society 5.0 – a science, technology and innovation policy 9

1.4 Conclusion 11

1.5 References 12

Chapter 2 European Union–Japan Relations: A Business System Overview of Free Trade Agreements (FTAs) 17

Louis-Caleb REMANDA

2.1 Introduction 17

2.2 Literature review 18

2.2.1 The relationship between Japan and the European Union in context 19

2.2.2 Understanding the business systems overview 21

2.2.3 Regionalization and Europeanization 23

2.3 Research propositions and methodology 25

2.4 Case of Japan – European Union Economic Partnership Agreement 27

2.4.1 The targets of the Free Trade Agreement 27

2.4.2 The organizations in charge of the implementation 28

2.4.3 Initiatives taken for the success of the EPA 29

2.4.4. JETRO and the EU-Japan Centre as bridges between authorities 30

2.5 Conclusion 32

2.6 References 32

Chapter 3 The Evolving Foreign Direct Investment Landscape: Evidence from Europe and Asia 35

Clare O’MAHONY and Thi Ngoc DAO

3.1 Introduction 36

3.2 Measuring FDI 37

3.3 Country selection 38

3.4 Data availability and comprehensiveness 42

3.5 Effects of reverse investment 44

3.6 Effects of pass-through investment and corporate inversion 46

3.7 Concluding remarks 49

3.8 References 50

Chapter 4 Investigating the Influencing Factors Revealing a Trade Potential for EU–China Agricultural Products: A Trade Gravity Model Approach 53

Junshi LI and Bernadette ANDREOSSO-O’CALLAGHAN

4.1 Introduction 53

4.2 Literature review 55

4.3 Methodology 58

4.4 Empirical results 65

4.4.1 The effects of GDP on EU–China agricultural trade 65

4.4.2 The effects of geographical distance on EU–China agricultural trade 67

4.4.3 The effect of GDP per capita on EU–China agricultural trade 69

4.4.4 The effect of institutional distance on EU–China agricultural trade 70

4.4.5 The effects of two dummy variables on the agricultural trade between the EU and China: WTO membership and landlocked 73

4.4.6. The EU’s trade potential vis-à-vis China in agricultural products 75

4.5 Conclusion 78

4.6 Appendix: Agricultural products defined by Standard International Trade Classification (SITC) 79

4.7 References 80

Chapter 5 Understanding the US Restrictions on Huawei and their Impact on the Development of the EU Digital Single Market and on the Outlook of the 5G Market 83

Qin TANG

5.1 Introduction 83

5.2 The epical US sanctions and EU undertakings 84

5.3 Basic ideas of 5G 87

5.3.1 What is 5G? 87

5.3.2 Three use cases of the application of 5G 88

5.3.3 5G: A new shuffle in the current global value chain? 90

5.4 Concerns and fallacies 93

5.5. Focusing on policy regulation instead of geopolitical gameplaying? 98

5.6 Conclusion: 5G future in juncture 99

5.7 References 102

Chapter 6 Analyzing the Quality of Online Product Reviews and their Antecedents 109

Yin XU and Sam DZEVER

6.1 Introduction 109

6.2 Literature review 110

6.2.1 Definition and measurement of online review quality 110

6.2.2 Antecedents of online review quality 111

6.3 Theoretical model and hypothesis development 112

6.3.1 The effect of product type on the quality of online reviews 112

6.3.2. The effect of monetary incentive on the quality of online reviews 113

6.3.3 Interactions between monetary incentives and product type 114

6.4 Data collection 115

6.5 Analysis and results 117

6.5.1 Research model and analysis method 117

6.5.2 Findings 119

6.6 Conclusion and implications 121

6.7 References 122

Chapter 7 Climate Policy Challenges in China: Spatial and Econometric Analysis 129

Miroslava ZAVADSKA, Lucía MORALES, Jarmila ZIMMERMANNOVÁ and Vít PÁSZTO

7.1 Introduction 130

7.2 China’s carbon emissions and economic growth 131

7.3 Environmental issues and greenhouse gases 134

7.4 Data and methodological framework 138

7.4.1 Data 138

7.4.2 Econometric models 138

7.4.3 Spatial methods 139

7.5 Econometric findings 141

7.6 Spatial findings 144

7.6.1 Coal consumption 144

7.6.2 Consumption expenditure per capita on health care 145

7.6.3 Carbon emissions 146

7.6.4 Carbon intensity 147

7.6.5 Typology of Chinese provinces based on cluster analysis 149

7.6.6 Cluster analysis types 149

7.7 Conclusion 152

7.8 References 152

Chapter 8. The Connecting Role of Home Country Institutions on SME Internationalization: China’s OFDI Support in Germany 157

Fabian HÄNLE, Stefanie WEIL and Bart CAMBRÉ

8.1 Introduction 157

8.2 Literature review 160

8.3 Methodology 162

8.4 Findings and discussion 165

8.4.1 Overview of findings 165

8.4.2 Discussion of theoretical contributions 171

8.5 Limitations and future research 176

8.6 Implications and conclusion 177

8.7 References 180

Chapter 9 Stock Markets and Cultural Dimensions: A Comparison Between Japan, South Korea and China 193

Sophie NIVOIX and Serge REY

9.1 The relationships between cultural values and financial decisions 194

9.1.1 The cultural dimensions of Hofstede 195

9.1.2 The Schwartz dimensions 196

9.1.3 The approach of Trompenaars 197

9.1.4 The GLOBE project 198

9.2 The measures of the cultural dimensions and their financial implications 199

9.2.1 The Hofstede dimensions for Japan, South Korea and China 200

9.2.2 The results of Schwartz for Japan, South Korea and China 201

9.2.3. The Trompenaars dimensions for Japan, South Korea and China 202

9.2.4 Scores of the GLOBE project for the three countries 202

9.2.5. Summary of risk and return assumptions for the three countries 204

9.3 Main financial patterns among the three stock markets 205

9.4 Conclusion 209

9.5 References 209

Chapter 10 Geo-economics and Geopolitics of Power Balance: Insights from the China-Iran-Pakistan Alliance 213

Lucía MORALES, Daniel RAJMIL and Bernadette ANDREOSSO-O’CALLAGHAN

10.1 Introduction 214

10.2 China’s economic challenges 216

10.3 Globalization insights and power balance 220

10.4 China-Pakistan-Iran trilateral cooperation 221

10.5 Pakistan’s vital role in the CPEC and regional stability 223

10.6. Energy and natural resources as a binding element for China’s geo-economics aspirations 225

10.7 Pakistan’s shift from geopolitics to geo-economics 227

10.8 Iran’s role in the alliance 228

10.9 Conclusion 232

10.10 References 233

Chapter 11 The New Silk Road, EU-China Connectivity and Global Logistics Crisis: Nordic Perspective to the Eurasian Land Bridge Rail Routes 239

Erja KETTUNEN and Claes G. ALVSTAM

11.1 Introduction 239

11.2 Europe-China connectivity and the geography of transportations 241

11.2.1 Modes of transport in Europe-China trade 241

11.2.2 Policy initiatives and the development of railway connectivity 243

11.2.3 Data and method of the study 245

11.3 Finnish rail transport routes to China along the Eurasian Land Bridge 246

11.3.1 Before the regular connections 246

11.3.2 The start of regular transports 247

11.3.3 The impact of the connectivity policies 250

11.3.4 The impact of the pandemic and global logistics disruption 251

11.4 Conclusion 253

11.5 References 254

Conclusion 263

Sam DZEVER

List of Authors 265

Index 267

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