Global Shift in Manufacturing Industry and Strategic Choices of Chinese Enterprises

Abstract

Under the background of global shift in manufacturing industry and in light with Global Value Chain theory, this thesis focuses its study on how Chinese Enterprises seize opportunities to step up enhancing their competitive edge. First, the geographic relocation of global shift and its motivation mechanism are interpreted, the concept of pulling mechanism and pushing mechanism and the new characteristics of global shift are put forward. Second, on the basis of the theory of Global Value Chain, the essence of global shift is explained as fragmentlization and geographic relocation of value chain by multinationals in accordance with their own development strategy and comparative advantages of host countries, which provides a chance for enterprises in developing countries to embed themselves into the global value chain and integrate with the world economy as well. Third, the modes and trajectory to upgrade in value chain are depicted and the significance of surmounting barrier by learning and innovation to ascend along value chain is elaborated. The last but not the least, according to analysis of the global shift that China undertakes and the challenges and opportunities that Chinese enterprises face, such a conclusion can be made that the strategic choice for Chinese enterprises is to embed themselves into the global value chain and upgrade themselves by learning and innovation.