China's Equipment Manufacturing Industry Strategy To Upgrade

Equipment manufacturing industry is the foundation of manufacturing industry and is considered as"mother of the industry". It is also the main support in national economy and plays a vital role in promoting the core competitive power of country. Since 1949, our country has already obtained great progress in equipment manufacturing industry and shaped system with certain scale and technical level. However, enterprises lack creativity, competitiveness and independence. Thus, we have to implement leap frog development of the industry and make it escalate in global value chain, when international industries are transferring from time to time and dividing the work.The global value chain theory shows accompanied by new industrial situation, such as the shift in global industries, the vertical integration in division and industrial outsourcing, and provides new theory weapon for the equipment manufacturing industry promotion. On the basis of theory, this paper analyzes and makes a study on the upgrade of Chinese equipment manufacturing industry.The article can be divided into five parts. The first part is to introduce the development of global value chain theory and its frame, including profit distribution, managing pattern and upgrade type. The second part analyses and summarizes the scale and the structure of employment on manufacturing industry, as well as industrial structure, profit structure by means of yearbook.The third part is to discuss types and characteristics of value chain in Chinese equipment manufacturing industry, as well as managing pattern. The fourth part analyzes important factors which affect upgrade of Chinese enterprises to find ways of upgrade for our industry. These factors are the key capability of building competitiveness, microcosmic environment construction and macroscopical environment construction. In the fifth part, it discusses several typical industries and their development situation, including automobile, machine tool and power, analyzes ways of upgrade in these industries.