Abstract: China’ s global value chain dependency embedded model based on export-oriented strategy is a rational choice under the background of "dual weakness" in domestic supply and demand, but this has caused a structural deviation between domestic demand and exports, which has led to local companies being locked in the low end of the global value chain. The key mechanism to resolve this structural deviation is to build a domestic demand-led global value chain based on dynamic comparative advantages, that is, to rely on strong domestic effective demand to establish a "self-oriented" global industrial division of labor organization mechanism. The basic characteristics of domestic demand-led global value chains can be summarized as having viability, emphasizing dynamic competition, emphasizing the advantages of major powers, and a long industrial chain extension. To build a domestic demand-led global value chain, China needs to cultivate and protect entrepreneurship at the micro level, maintain equal industrial competition from the meso level, and optimize the government's economic governance system from the macro level.
