A Study Of Value Chain Upgrading Path Of China’s Electronic And Telecommunication Equipment Manufacturing Industry

From the late 20th century, significant changes have taken place to the integration of global recourses and international division of labor model. Unable to effectively deal with intense competition on their own, more and more transnational corporations are adjusting their development strategies, such as outsourcing low-end processing and assembly areas and focuing on the most competitive process including R&D, brand, service and marketing channels. To explain current pattern of this division, the global value chain theory can be adopted. According to the theory, developed countries distribute manufacturing and professing sectors to the developing countries that have cheap labors and abundant resources in order to focus on R&D, technological innovation, marketing chains, thereby gaining high profits and controlling developing countries.Since reform and opening-up, manufacturing industry of our country has joined international division of labor thanks to the comparative advantage formed by cheap production elements, becoming the center of manufacturing in this world. However, despite of "world factory" reputation formed by the large quantity of exportation, China still fails to upgrade manufacturing industry value chain, and is still facing the challenge of low-end position of value chain and constraints of resources, energy, environment, and so on. As a basic and leading industry of our country, the manufacturing industry of electronic and telecommunications equipment has made outstanding contributions to China’s economic development. Despite its position of the lower end of global value chain by cost advantage and resource advantage, the rapid growth is weakening the advantages gradually. The lack of technical innovation, the restrain of resource and environment, the increasing cost of elements, the shorting of native brand and the small industry scale are commonly exist issues. Therefore, it is meaningful to analyze and explore a proper way to advance China’s manufacturing industry of electronic and telecommunications equipment in global value chain.Based on domestic and foreign scholar’s research results, this paper takes electronic and telecommunication equipment manufacturing industry as the object of study and analyzes the efficiency, necessity, opportunity, challenge and way of global value chain upgrading.This paper uses the method of normative analysis and empirical analysis, qualitative analysis and quantitative analysis to investigate the problem of China’s manufacturing industry of electronic and telecommunications equipment, and explores a proper way of value chain upgrading. Firstly, this paper defines and describes related concepts and theories such as value, value chain and value chain upgrading. Secondly, the development situation and status quo are analyzed by using the data and index of recent 10 years. By combining the value chain of Using the method of normative analysis and empirical analysis, qualitative analysis and quantitative analysis and "smiling curve" theory, this paper also estimates that the industry of our country is still in a lower location of the global value chain. Thirdly, by using DEA model and building index evaluating system, this paper analysis the upgrading process of industry value chain and measures the efficiency of upgrading. In general, the technique efficiency, scale efficiency and combined efficiency are below 1, which indicates DEA inefficiency. On the basic of previous analysis, this paper also indicates the necessity, opportunity and challenge of upgrading. At last, the proper way of upgrading for enterprises and the whole industry are explored.