The coronavirus pandemic will shake the foundation of internal product division system established in the past decades. In the future, we may not continue to use the pure economic concept of reducing transaction cost to support the internal product division of labor after the epidemic. Instead, social cost may be the final determining standard of industrial allocation.In the past, the global value chain dominated by multinational enterprises of western developed countries will undergo drastic scale reduction, scope shrinking, geographical variation and formation change. However, no country in the world can put aside or replace China’s industrial chain.After the epidemic, China should firmly maintain the economic globalization through participating in the GVC, but the original strategy needs to be adjusted. The way for China to take part in the economic globalization in the new round may change from the export-oriented globalization to the strategy of utilizing domestic demand. Based on the reality that Chinese enterprises have double-embedded in GVC and local industrial clusters, Chinese government should actively promote the construction of global industrial chain clusters, so as to cope with the trend of future globalization.
