Objective/Meaning  Under the background of global climate change, the advancement of carbon neutrality goals and global value chain reconstruction, this study aims to examine the evolution characteristics and formation mechanism of low-carbon trade competitiveness between Fujian and Taiwan, with a view to providing reference for the green transformation and high-quality integrated development of trade.

Methods/Procedures  Based on the input-output table and carbon emission data in 2012, 2017 and 2022, the low-carbon trade competitiveness index for Fujian and Taiwan as a whole and for the four major sectors was calculated. And the evolution logic of its competitiveness from the perspective of the evolution of GVC division characteristics was analyzed.

Results/Conclusions  The study found that: (1) The overall low-carbon trade competitiveness of Fujian Province exhibited a “V-shaped” evolution, forming a competitive pattern characterized by “services-led growth, industrial recovery, and drag from agriculture and energy.” Taiwan remained at a low comparative-advantage level, displaying the features of “trade surplus but weak low-carbon advantage”; The agriculture and energy remained persistently weak, the industrial advantages fluctuated, and the service sector weakened. (2) In Fujian, the forward participation increased, while the backward dependence declined, and its position in the division of labor improved overall. Although Taiwan maintained a relatively high level of participation, its backward dependence deepened and its positional advantage receded. (3) Relying on the expansion of digital services, the development of green manufacturing, and the optimization of the energy structure, Fujian promoted the upgrading of division of labor and enhanced its competitiveness. Taiwan, by contrast, was constrained by backward dependence and carbon-intensive inputs, resulting in the insufficient transformation of labor division advantages. These findings indicated that the key to improving the competitiveness of low-carbon trade was to optimize the patterns of GVC participation, reduce the dependence on high-carbon input and improve the carbon efficiency.