Study on the Automotive Industrial Upgrading in China Based on Global Value Chain

Automotive industry is one of the pillar industries for our country. As the world's third largest car manufacturer behind U.S. and Japan, China is narrowing the gap with first echelon with an annual growth of over 20 percent. But it should not be ignored that our automotive industry is still at an infant stage. Based on the theory of global value chain and industrial upgrading, this paper analyzed the parts of global automotive industry value chain and put forward some suggestions for our country's automotive industrial upgrading. Chinese auto manufacturers should seek suitable niche in global automotive value chain to develop and upgrade, and move towards more profitable, more capital- and skill-intensive section along the global automotive value chain step by step.