Research Of China's Trade Structure Optimization Path Based On Global Value Chain Management

In the wave of economic globalization,international division of labor is getting deeper.Intermediate goods trade has become the main trend of international trade.There is repeatedly statistics of intermediate products in traditional statistics method of international trade.It could not reveal the real benefits that the participants can get in the international division of labor.Traditional statistics method of international trade exaggerates China's gains and competitive power in international trades.Global Value Chain analysis that based on value added is becoming an important supplement for traditional statistics analysis of trade.In recent years,China's export has greatly been affected by international market recession and world trade decline.There is enormous pressure on adjustment and upgrading of industrial structure in China.Trade structure has been viewed as an important reflection of industrial structure,directly reflecting the degree,mode and level of a country's participation in international division of labor.Analyzing China's trade structure optimization from the view of global value chain could reveal the real benefits and competitive power that China gains in international trades.In addition,it could also specify the right direction of China's industrial structure development.This means a lot for China's sustainable economic development in the future.This paper analyzes China's industrial status and trade structure in global value chain by using TiVA(Trade in Value Added)database,which initiated jointly by Organization for Economic Cooperation and Development(OECD)and the World Trade Organization(WTO).It develops a series of contrastive analysis indexes,like as value added ability,value acquisition ability,control ability of global value chain,vertical specialization index,revealed comparative advantage index(RCA),etc.The research study in this article reports new research findings based on comparing these indexes with other entities that highlight the current status of China's trade structure.In particular,this essay establishes a matrix model called "industrial value acquisition ability-production efficiency" to elaborate the trade industrial optimization path of low,middle and high value added industry respectively.The research finds out that China is still in the low position of global value chain.The added value mainly comes from scale expansion,instead of intensive growth.Besides,China's ability to acquire value and control global value chain is relatively weak.In brief,China is a "big trader",instead of a "powerful trader".There are three main problems of China's trade structure currently.First,China's export strongly depends on developed entities while the global value chain's location and governance begin to transfer to undeveloped entities.The trade relationship between China and the United States is extremely unbalanced.Second,China's export is led by low value added industry such as manufacturing,with a risk of stuck in the low position of global value chain.It is mainly manifested in two phenomena:the continuous declining proportion of middle and high value added industry's trade volume to export;the continuous declining revealed comparative advantage index(RCA)of high value added industry.Third,the proportion of intermediate goods to China's export is comparatively low.China mainly engages in the processing trade of final goods,which is the last link of global value chain.As a result,China is susceptible to the needs of other economic entities and the supply of upstream intermediate goods,and unable to disperse risks effectively.The main conclusions involve as followings:First,China should promote multilateral trades with undeveloped entities.In this way,China could reduce dependence on developed entities and complete the layout of global value chain in ahead.Second,China's export should transfer from low value added industry to middle and high value added industry,from final goods trade to intermediate goods trade.But,as low value added industry occupies an extremely important position in China's trade structure,the low value added industry could not be totally abandoned in the short term in China,while it should be the long term target to achieve leapfrogging development of middle and high valued industry.It should optimize its trade structure gradually based on its own status.Third,China should formulate specific optimization strategies of trade structure for low,middle and high value-added industries based on the law of global value chain development and the different status quo of low,middle and high value-added industries.