The Globle Value Chain System, Market Structure And Market Performance Analysis

Based on the development of economic globalization, the production of goods has formed a longitudinal vertical division of labor system of global value chain, value creation activities (the production of goods) are gradually to be completed by a number of different companies within the region together from across the geographical space. Different segments of global value chain have a profound impact on the value of the distribution region in the areas of economic development. Similarly, as the world's second largest economy in the eighties of last century, China used low labor costs to be embedded in the global value chain system, and in which play a very important role.Global Value Chain has brought decades of economic prosperity and people's living standards gradually improved, while undeniable, as China's manufacturing industry has been in the global value chain of manufacturing, resulting in increased poverty, poor Widening gap between the rich and the uneven development of eastern and western regions and so on. So in terms of the lessons of China's participation in global value chains for, we need to figure out another two questions, what is the ultimate determinant to decide distribution of he value of the various stages of value chain And through what channels, Chinese manufacturers can realize the upgrade of value chain and get rid of containment and restraint from international sellers and multinational groupIn response to these two issues, this study focuses on below fact. In retrospect the global value chain theory and market structure theory and market performance theory, through the game model to prove the smile curve theory is not universal. On the contrary, the relative market structure in value chain decided the ability to obtain the size of the final factor in the profit in the entire value chain. That is : a part of the market structure in the value chain more tends to perfect competition, the weaker the ability to obtain the profits; the other hand, the stronger its ability to obtain profits, and determine the value of the distribution of the entire value chain.Based on the theoretical analysis, this article also judges and explains China's position and characteristics in the global value chain of. And theoretical analysis concluded that if China wants to realize the value chain to improve the profitability of Chinese enterprises, from being captured to the changes toward the leadership position, you must do three things. First, build China's domestic oligopolistic market structure, provide protection to Chinese enterprises to be engaged in global value chain more deeply. Second, build the domestic value chain system and develop internationally based on domestic value chain system. Third, in the emerging industry's global value chain, the government needs to do related work ahead, improve policies, laws and regulations, to ensure highly efficient running, provide a solid foundation for China's leading enterprises being bigger and stronger. These three aspects are the same strain and is indivisible.