This paper examines the challenges and opportunities faced by China's manufacturing industry in the context of global value chain division and technological revolution. It explores the impact of manufacturing servitization on enterprise value chain advancement, aiming to address how this transformation affects climbing the enterprise value chain. Drawing on data from Chinese industrial enterprises between 2003 and 2013, this study employs micro-level empirical analysis using a two-way fixed effect regression model and 2SLS instrumental variable method to establish a causal relationship between manufacturing servitization and enterprise value chain advancement. The findings reveal that manufacturing servitization has a significant positive impact on climbing the enterprise value chain, particularly for technology-intensive, capital-intensive, and resource-intensive enterprises. By providing empirical evidence and policy implications for China's manufacturing industry transformation and upgrading efforts, this research enriches existing literature on both manufacturing servitization and value chain advancement.