The Impact Of The Global Value Chain Division Of Labor On The Upgrading Of China's Manufacturing Industry

Reform and Opening policy made China's manufacturing industry gradually embedded into the global value chain.In the next more than 30 years of development,the breadth and depth of China's manufacturing sector's participation in value chain division of labor is constantly improved.Participating in the global value chain division of labor has brought enormous impetus to China's economic growth,it also brings some serious consequences.Such as resource depletion,environmental degradation and instability in economic development which result from high dependence on foreign countries.At the same time,China's processing industry is limited by the technology and market which controlled by foreign capital,so it may be locked in the processing,assembling and production process with low added value.This paper makes a systematic analysis of the impact of global value chain on the industrial upgrading.I hope to see the opportunities and challenges of the upgrading of China's manufacturing industry,and find solutions.Firstly,this paper discussed the theory of global value chain in detail,including formation,drive and governance model and industrial upgrading.Secondly,this paper analyzed the history and present situation of manufacturing industry in China,and the position of manufacturing industry in global value chain.This paper classified the manufacturing industry,with the OECD database of 2002-2011,analyzed and calculated the vertical specialization indies of different manufacturing sectors.Thirdly,depended on the econometric analysis of China's participation in the global value,I found that China's manufacturing industry have the risk of being locked in low value-added which hindered industrial upgrading.In the end,I proposed some relevant polices and recommendations on the basis of the analysis:building the domestic value chain system,constructing regional value chain dominated by China relying on the Belt and Road Initiative,leading investment according to different industry value chain upgrading conditions,coordinating labor productivity,increasing wage and fostering consumer groups of middle class,combining the "made in China 2025" policy to promote global value chain upgrading.