Global Value Chains in the Digital economy: transparency, disruption and narrative governance Exploring the viral TikTok videos

This thesis examines the impact of digital disruptions on the governance of Global Value Chains (GVCs), with a focus on the 2025 dissemination of viral Chinese TikTok videos alleging that Western luxury products labeled as “Made in Italy” or “Made in France” were actually manufactured in China. While traditional GVC frameworks emphasized efficiency and cost reduction, the widespread adoption of digital technologies and social media has increased the significance of transparency, legitimacy, and narrative control. This research applies globalization theories and the concept of Industry 4.0, situating the TikTok incident alongside major political events, including Brexit, shifts in United States trade policy, and the COVID-19 pandemic, each of which exposed systemic vulnerabilities. The findings indicate that TikTok serves as both a communication platform and a governance intermediary, thereby increasing bottom-up scrutiny and prompting firms to adopt reactive strategies. In conclusion, this thesis argues that the digital economy requires a reconfiguration of GVC governance, where transparency, legitimacy, and narrative control are as important as efficiency and cost reduction. The implications are economic and geopolitical, including a reduction in European cultural soft power, increased influence of Chinese digital platforms, and a more active role for consumers in global governance. The research recommends that firms in a semi-globalized world adopt hybrid governance models that combine technological traceability, credible narratives, and proactive engagement with digitally connected audiences.