Studies On Upgrading Of Oem Enterprises’ In China In The View Of Global Value Chain

Globalization has been an irreversible way in Macro-process, but the problems it brought out seem to be more and more serious. People probably have got rid of the nightmares happened in2007when Subprime mortgages causes a worldwide crisis, and the reason was not the recovery of economic, but the new crisis caused by debt default risk between European and American which resulted in an unexpected trend. Consumer’s insufficient confidence increased the risk in global manufacturing, especially those OEMs that have been suffered a lot whenever crisis happened. OEMs in China involved into Globalization for30s years since the reform and opening up have made remarkable achievements which meant a lot to a sustained rapid growth for China. However, the uncertainty circumstance made itself a difficult time for sustainable development of OEMs in China, and there is an urgent need to carry out the research of upgrading for OEMs in China.GVCs has been an useful framework to analyze the upgrading for OEMs. Theoretical studies have been focused on governance, upgrading, profits and interactions among them. According to so many literatures, there are a few misunderstandings about upgrading. For example, some researchers took low-profit trend for OEMs as the same as development dilemma, and in their opinions, all OEMs should made steps into upgrade immediately. Some researchers paid excessively attention to the path from OEM to OBM, and emphasized too much on the learning and accumulation between technical capacities and marketing skills without verifying the feasibility of upgrading for OEMs in different perspectives which made an vague overviews for innovation in OEMs in China.This paper, based on GVCs’theory, applying some research methods like literature analysis, case study and so on, studied the development process of OEMs in China, the development dilemma of OEMs in China, the upgrading of OEMs in China. This paper argues that there is a endogenous choose in the development process of OEMs in China, the real development dilemma of OEMs in China is the replacement on the time scale, upgrading is inevitability, but upgrade for all OEMs in China is unrealistic. In short term, OEMs in China haven’t had the relevant key technology gained by independent R&D to finish the upgrading, so, upgrade in the context of marketing seems to be more practical. Finally, OEMs in China could acquire capabilities to establish a competitive advantage by M&A and Strategic Alliance.