GPNs And IT Industry Upgrading In China

With the continuous developing of economic globalization, the emergence of global production networks as one kind of organization, has profoundly changed the world production patterns. And many transnational companies have also used the theory of global production networks in developing their global strategy, which has great impact on the development of related industries in developing countries. Meanwhile, the theory of global production networks, as one of new analysis tools , has been used to analyze the current situation of the international division of labor, how the enterprises of developing countries immerges into the global economy effectively and how the theory affects one country's industry upgrading .This paper begins with the study of the basic theory of global production networks, which concludes the industrial upgrading mechanisms within global production network, then, by studying the relation between Chinese IT industry and world IT industry networks, at last, the paper gives out policy suggestions on how to upgrade Chinese IT industry. This paper argues that there is still a gap in the current development of Chinas IT industry when compared with developed countries in the field of IT industry .Our country's IT industry is still at the bottom of the global industrial value chain, which greatly needs to be upgraded by us. This paper also holds the idea that embedding to the global production networks is an effective way to industry upgrade. Therefore, our IT industry should actively take part in global production networks, by using the knowledge of the global production networks and industry upgrading mechanism in order to gradually achieve the higher status of global production networks and industry structural upgrading.