Research On China’s Telecommunication Equipment Manufacturing Industry Upgrading Strategy From The View Of Global Value Chain

Today’s economic globalization leads to a great change of the form of international division of labor, with the change of the value creation system of the world. The distribution of the commodity value creation processes in different countries around the world form the Global Value Chain, and there is a huge difference of the allocation of value added between different processes. Under this situation, the upgrading of industries located in the lower part of the GVC has become the focus of research. In recent years, the upgrading process of China’s telecommunication equipment industry has been impressive. In the past20years, our technology has experienced from the introduction and imitation to leading the global technical trend, the enterprises in China have experienced from obscurity to rising as famous multinational Telecommunication equipment giant, Earth-shaking changes have taken place in many aspects. As a result, it is worth exploring the upgrading process of China’s telecommunication equipment industry.The emerging of GVC theory provides a new perspective for the research of both macro industries upgrading and micro enterprises upgrading. The purpose of this study is to solve the further upgrading strategy of telecommunication equipment industry in the view of GVC. A relatively complete analytical framework of GVC has been constructed for this reason. Above all, this essay uses GVC theory to locate our telecommunication equipment industry, analyzing the type of driving force; meanwhile the governor and governance structure of the value chain has also been examined. Finally, on the basis of the above research conclusion, we put forward the upgrading path and strategy for the enterprises in this industry.At the last part, using HUAWEI as a case study, this essay focuses on the following three upgrading strategies employed by the company:1.Innovation independence;2. Restructuring of the value chain; and3.Transnational operations. In doing so, the merits of these strategies are uncovered, suggesting their contribution to HUAWEI’s upgrading of its value chain system and subsequent branding successes.