Liu Zhibiao: Construct a Powerful Manufacturing Country on the Path of Global Value Chain

Release time:2019-05-22Author: Liu Zhibiao

In the new round of economic globalization, the construction of a powerful manufacturing country should be carried out under the high-level economic system for opening up on all fronts. Building a high-quality modern economic system requires us to further consider the strategy, main direction, and fundamental path of the transformation and upgrading in the manufacturing sector. We put forward the policy of building a powerful manufacturing country in the GVC. First, Chinese enterprises can rely on the huge domestic demand to build demand-driven or technology-driven global value chain, and bring global suppliers into our own division network. Second, at present, we should discard static comparative advantage theory, and instead, take the dynamic competitive advantage theory as our guidance to catch up with some technology-intensive links in the upstream of the GVC. We should develop our strengths and complement the weaknesses, broadening the bottlenecks. Third, in order to break away from the fate of "being captured" in the GVC, we must encourage companies’ functional upgrading unremittingly, especially focusing on the development of manufacturing services. Fourth, strong manufacturing country need to base on good competition policies to create a fair environment for competitive market. Fifth, it’s of great importance to combine the two major tasks of upgrading the value chain and cultivating world-class advanced manufacturing clusters, and achieve strategic interaction.