Literature Review of Global Production Networks and World-System Theory: Analyzing CBAM's Impact on China, Vietnam, and Indonesia's Steel Industries

The European Union's (EU) Carbon Border Adjustment Mechanism (CBAM) introduces carbon tarrifs on imports, raising major concerns for less developed countries. CBAM risks intensifying global inequality by limiting market access and constraining development. This study contends CBAM acts as structural dominations, as core countries like the EU impose stringent standards for non-core countries that have weak technology, green infrastructure, and financial resources. The mechanism indirectly pressures adoption of low-carbon norms globally. In contrast to China as a semi-periphery that have stronger adaptive capacity, Vietnam and Indonesia will risks being excluded from global market since both countries have weak green technology and the absent of domestic carbon markets.