A Study On China’s Auto Industrial Upgrading In The Global Value Chain

With the development of economic globalization, how to extend the global valuechains has increasingly been taken seriously as industrial upgrading governancemodel. Industrial upgrading in the global value chain has become a subject that isworth exploring. Automobile industry as a capital and technology-intensive industry,it is related to a long industrial chain and high added value. After more than half acentury’s development, China’s automobile industry has been the king of the world onscale of production and marketing. However, due to the weakness of the lack of coretechnology and independent brands, China’s automobile industry has been in the low-end manufacturing and low-value-added sectors in the global value chain. With thedisappearance of the human resource advantages, China’s auto industry need toextend the industrial chain and set up a complete industrial value chain from R&D toproduct and sales in the global value chain and industrial upgrading.In addition to the introduction, this article is divided into four parts. The second part is the theory of industrial upgrading in the global value chain. Inthis section, the article analyzes the pattern of industrial upgrading by defining theconcept of industrial upgrading. Industrial upgrading includes product upgrading, theindustrial structure upgrading and value chain upgrading. In the process of industrialupgrading, the competitive advantage will determine the direction of industrialupgrading. Technological innovation is the main driving force and source of industrialupgrading. As an effective model of industrial upgrading, the value chain upgradinghas its own characteristics in the conditions of globalization. Upgrading in the globalvalue chain must choose a different upgrading path depending on the driving forceand production processes. Finally in this part, we must analyze its own characteristicsand pay particular attention to the external effects of the height of the automobileindustry when we focus on how to upgrade the automobile industry higher.The third part is the situation of China’s auto industry in the global value chain. Inthis section, first of all, it is divided the stage of the development of China’sautomobile industry and recognized the development of China’s auto industry by leaps and bounds. Second, followed by the summary of the development status of China’sautomobile industry, the scale of China’s auto industry expands largely and quicklyand gets significantly profits under the conditions of globalization. Automotiveproduct ranges great and market share steadily develops with its own brands. Theautomotive market enhances concentration. Foreign trades and the level ofglobalization expand. The third part is about the development of multinational inChina’s auto industry. The multinational companies get into China’s auto industrythrough joint ventures and cooperation and variety of ways. They affect thegeographic distribution of China’s auto industry to six automobile industry clusters.Multinational vehicle manufacturing, parts manufacturing and technology researchand development, those multi-links embed in the form of China’s automobile industry.Finally, the article shows the advantages of China’s auto industry and tradeadvantages by RCA, the index of the international market share and TC.Part IV and Part V show the barriers to industrial upgrading in the global valuechain and analysis and policy recommendations. In the fourth section, the article analyzes the existing obstacles during China’s automobile industry upgrading in theglobal value chain from the structural obstacles, internal R&D and innovationbarriers and institutional barriers. On this basis, the fifth part shows ways for betterdevelopment of the automotive industry from different market players-businesses andgovernments and how to extend the industrial value chain to make policyrecommendations.China’s auto industry is the main object of this article. On the basis of thesituation of the domestic auto industry, we need to upgrade China’s auto industry inthe global value chain. And now China’s automobile industry has had a goodfoundation both in researching and new products and self-brand development all byown-self.The innovation main features of this paper: First, this article upgrades theautomotive industry in the context of the global value chain analysis. This is a uniqueperspective. Second, the analysis of the automotive industry value chain iscomprehensive and shows another practice of global value chains theory. The lack of this article mainly presents that it failed to use empirical analysismethod to establish an effective model of industrial upgrading in the global valuechain.