Research On Impact Of Chinese Enterprise FDI Upon Upgrading Of Global Value Chain Links

With the development of global production and trade, in order to constantly maintain and strengthen their own competitive advantage, more and more multinational corporations in developed countries began to practice global layouts based on the value chain. The world value creating system has changed in very significant ways such as disintegration and reorganization. With the predominance on capital, technology and human resource, the MNCs from developed countries have dominated the highest value-added strategic links, while most developing country firms are located in the low level of Global Value Chains (GVC), and become the suppliers of labor-intensive and lowest value-added products and services. More seriously, the further development and promotion of industries in developing countries have also been restricted and hampered.Faced with the global essential transformation, enterprises in developing countries including Chinese enterprises should learn from the MNCs and search favorable locations for each value chain links. With the unsatisfactory spillover effect of FDI in China, technology souring FDI becomes critical and a ideal tool for the developing countries to achieve international advanced technologies, and come through the technological barriers for industrial development in order to achieve upgrading through increasing the technology sourcing FDI in developed counties.In this paper, by analyse the current Chinese investment in foreign countries and their links in GVC, I establish a complete theoretical framework to explain the channels, as well as the extent to which the upgrading links of China's enterprises in global value chains.Referring to research methods, we use both theoretic analysis and experiencing analysis together with empirical analysis. From the perspective of the constructed theory frame, based on the situation in China, we tempt to indicate that technology sourcing FDI plays an important role in promoting the statue of China in Global Value Chain. Then we apply the empirical analysis as an arbiter.This paper is divided into six parts. Based on the summary and analysis of GVC theory and Technology Souring FDI theory, I stady the driving force to promote in GVC, namely the necessity to upgrade in Part HI. Also, I cite two common means of access to technology. Part IV, based on the previous parts, I introduce another species of a more effective way, foreign direct investment, to access to technology. As well as a detailed analysis of the advantages of this approach and mechanism. In the Part V of this paper, I analyse the four different ways of how the technology achieved from foreign direct investment work on the promotion of GVC, and examples to illustrate; Finally, Part VI gives conclusions and recommendations.