Analysis On The State Of Global Value Chain Of Chinese Auto Industry

With the system of Global Value Chain everlastingly changing, auto industry that be taken as crown of industry has built special division of labor system in globalization wave. And in this system, the traditional industrial countries almost lie in high-value sector in value chain, while the developing industrial countries like China still lie in low-value links. Due to developing lately, core technology lagging behind, brand strength still weak, China auto industry can only passively accept the role of leading by overseas Multinational Enterprise. China auto industry lie in production and processing links of value chain, then production and processing links belong to low-value links, while high-value links like R&D still controlling by traditional industrial countries. With the labor welfare disappearing and tariff reduction, those multinational enterprise that long-time rely on China low cost of labor and resource, must move the links like production and processing to Southeast Asian countries in the future,once taken off the key sector of value add links of China auto industry, This will pose a threat to China's participation in the global value chain division of labor. Therefore China auto industry should accelerate the pace of industrial upgrading.Firstly this paper will state the research background and the reason for the question. And put forward the research purpose and practical significance of the paper,and the global value chain related literature and the Chinese automobile industry related literature to sort out and summarize the summary. Secondly, through the summary of the literature review, using the value chain model constructed by predecessors, taking FVAiX and DVAiX and the index of GVCs-position and GVCs-participation, and expounded the accounting model and accounting method of these indexes. Subsequently, the status of the global value chain of the automobile industry was analyzed using the data of the OECD-WIOD database, and the potential of the Chinese automobile industry in the global value chain was analyzed and studied.In the past two decades (1995-2011), China's automobile industry potential development trend. Then, based on the analysis of the development of China's automobile industry, this paper analyzes the reasons why the Chinese automobile industry is at the low end of the value chain and the obstacles to the high value-added link. Finally, the policy proposal for the upgrading of China's auto industry in the global value chain is proposed. Therefore, this paper aims to analyze the value chain position of China's automobile industry in the whole world, and analyze the reasons why the Chinese automobile industry is at the low end of the value chain and put forward some policy suggestions.