Global Production Networks And Industrial Upgrading In Chinese Automotive Industry

Global production networks(GPNs) is increasingly popular,which has profoundly changed the pattern of production all over the world.It has become an important basis for Multinational Companies(MNCs) to make global strategy,which exert great influence on developing countries to participate in international economic cooperation and regional economic development.At the same time,GPNs theory as a new theoretical analysis tools can be used to analyze the current situation of the international division of labor.This article explores automotive industry upgrading with GPNs theory,and analyze the current situation where Chinese automotive industry is in.At last,some suggestion will be given.This paper holds the view that GPNs of the automotive industry has the following characteristics:vehicle manufacturers and parts manufacturers entered the stage of complementary specialization;production modularization;the world's auto parts supply chain showing Japanese "two-group monopoly" mode and Europe& American "horizontal division of labor,self-development" mode.Under this circumstance,the competitiveness of China's auto-makers and vehicle parts manufacturers is not satisfactory.Industrial upgrading in GPNs provide opportunity for Chinese automotive industry,Chinese firm can be integrated into the GPNs in order to achieve industrial upgrading.Chinese automotive industry can be embedded in GPNs and autonomous participation in the GPNs.The knowledge diffusion mechanism and industrial upgrading mechanism can help Chinese companies improve their situation in GPNs,and raise the efficiency of production.