Study On The International Position Of China's Manufacture Industry In The Global Value Chain

Since 1960,with the international division of labor being further deepened,developed countries has built a global value chain by their strong capital and technology force.China relying on their cheap labor and abundant resources is embedded in this global value chain in the form of international subcontracting.Now,China has become the world's largest exporter whether it's calculated by traditional method or value-added method.But does “the world's largest exporter” also mean China has become a powerful manufacturer? What on earth is China's role in the global value chain?This paper use GVC participation and GVC position index to make a comprehensive analysis of China's status of manufacture in global value chain based on Koopman's principles and newest TiVA database(2000-2014).The results indicate that China is a big manufacturing country,but not a powerful one.Though China's GVC participation index is very high,but GVC position index has always been negative.Compared with developed country's high GVC position due to their strong capital and technological force,China's overall manufacture is in a low status in GVC.As for the sub-sectors,China's GVC position: labor intensive capital intensive technology intensive.Relatively speaking,China has a higher position in labor and capital intensive industry,but there're also some industries with lower position.Technology intensive industry is in a lower position,especially in some industry requiring core technology and independent R&D capabilities.But there're also some industries with a higher position which is a big progress for China.Finally,with the analysis of factors affecting the status of international division of labor,this paper gives some suggestions on how to improve China's GVC position from the aspects of enterprises,government,nation and international.