Analysis Of Our Nation's Manufacturing Upgrade Path Based On The Vertical Governance Structure Of The Value Chain

The Gloable Value Chian has been an important foundation for our nation's manufacturing to develop so fastly for the several decades.Our nation's manufacturing has been fixed at the vertical governance strcture of the Gloable Value Chian,as the result of the factor endowment of our nation's manufacturing, export-oriented policies adhered by the chianese government and the strategic purpose of the multinations. As a "factory of the world",our nation's manufacturing has to be assigned the low-profit parts of the Gloable Value chian such as processing,manufacturing and assembling.The economic crisis that broke out in 2008,has put an huge impact on the export-oriented manufacturing of our nation.The academe has been in full cry demanding our nation's manufacturing to be upgraded.Because of the fact that our nation was characterized by the low-technology,immature market and low labor cost in the early phase of the reform and opening up,our nation's manufacturing entered into the Gloable Value Chian by participating in the low-end tache of it.Therefore,to make our nation's manufacturing upgrade,we have to reconsider the environment that our nation's manufacturing is facing today.This paper reanalyzed the actualities of our nation's manufacturing from an angle of the nagetive impact of the Gloable Value chian on our nation's manufacturing.At the same time,the paper also analyzes all kind of factors by the methods of empirical analysis, which would help our nation's manufacturing to be upgraded. Finally, the paper concludes that:first, because of the importance of the GVC,our nation's manufacturing can't be upgraded without being involved in the GVC.So, our nation's manufacturing has to be upgraded in the framework of the governance structure of the GVC. On the other hand, our nation's manufacturing must face pressure and resistance as the result of the "waterfull effect"of the GVC.So our nation's manufacturing has to take advantage of the positive factors such as the mature hign-end market,complete industrial frustrction and so on, to build national value chian,nurture native leading corporations and upgrade the whole value chian.Therefore, the paper puts forward to two ways to upgrade our nation's manufacturing: "GVC Integration" and "NVC Integration". "GVC Integration" fits the manufacturing businesses that have taken part in the GVC.The paper considers that:On one hand,these corporations can take advantage of the falling price of the international assets so as to create their own brands and build their own channels through buying or annexing some small-size multinationals.On the other hand,these corporations can also build a firm cooperationship with the leading multnations to realize the upgrading from the low-end to the middle-end by enlarging the scales and threngthen their manufacturing efficiency. "NVC Integration"fits the corporations that are based on native matket and will enter into the international market.The paper considers that,first,these corporations can form a whole national value chian by integrating the cluster supply chian.Second,these corporation can also upgrade the value chian by integrating the supply chian of the leading multinationals and taking advantage of the leading power of the multinationals.