This paper is based on the frame of global value chain theory in order to dem-on strate the functional mechanism of the transformation of China’s manufactu-ring indu stry. On the basis, by analyzing and combining the correlation theory of global value chain of global value chain to analyze China’s manufacturing industry in two aspects: the state of development and the fundamental state of global trade’s participation. M oreover, this paper argues the necessity and urgency of the transformation of China’s manufacturing industry. Also, its constraint is included. In the end, it shows the policy proposals of how to achi-eve this kind of transformation.During recent years, China, with great participation in the global value chain, ha s gained tremendous achievements on its manufacturing industry and the promoting influence around the whole world. In the meantime, it is sobering to see the fact that we still stay in the dry tree. We can find many problems on industrial structure when we only pursuit high yield and open system. For example, majority of those industries develop in the mode of extensive form and pay little attention to environmental. Mor eover, we depend too much upon the outsourcing business for we own the beneficial of labor-intensive industry, as a result, we lack of the capability of independent innov ation. Also, developed countries pay high attention to manufacturing industry, that’s n ot only impedes our export trade of industry but also shocks our industrial structure. With the rise of competition pressures from newly-developing countries, our labor-int ense superiority has been weakened. Those newly-developing countries are replacing us to become their production base. Above all of these, point to the fact that our manu facturing industrial in the inferior position, in order to get rid of the situation, we shou ld seize existing advantage to promote industrial upgrading. In the meantime, we ought to research and develop the original intellectual property. In this way we can keep i n the leading status in the age of economic globalization context. |