The Path Exploration About Upgrade Of Chinese Processing Trade Based On The Global Value Chain

The extension and integration trend of the global value chain not only become the important opportunity to the rapidly expanding export of China, but also pose new challenges to the strategic adjustment of China's export processing trade. Through deconstructing the global value chain or"slicing"we will find, for large numbers of manufacturers, the strategic upgrade of processing trade faces the dual task of ordinal enhance within manufacturing segment and the transition from low-end to its high-end. The intertwined of"question in fragment"and"problem among fragments"is a unique perspective. We try to clarify that ordinal enhance within fragment is the base of precedence transition among fragments. Besides, the precedence transition is the strategic focus of the upgrade of Chinese processing trade. This analysis constitudes the basic content of"bit order theory of global value chain".The control of the value chain and related income distribution are decided by manufacturer's market position. The deep meaning of bit order theory is to inspect the strategic adjustment of processing trade from two dimensions--competiton within fragment and competition among fragments. The domestic competition of the same industry is a necessary condition for the upgrade of processing trade. The meaning of competitiveness within fragment based on comprehensive benefits, is not only to play a market competition mechanism of survival of the fittest, also to cultivate competitive assets more importantly. So it's the objective basis to enhance competitiveness among fragments and the basic support of precedence transition. To the manufacturers, our analysis shows that the target is precedence transition, but the basis is ordinal enhance. So we empirical test the main factors which affect ordinal enhance, and propose related polices and proposals accordingly.