A Study on China's Position in the Global Value Chain

This study explores the changes in China's position in the global value chain and its key influencing factors. Through a literature review, this paper divides China's evolution in the global value chain into two stages: the early development stage in the early days of reform and opening and the key turning point stage marked by joining the World Trade Organization (WTO) in 2001. The study points out that foreign direct investment and international relations are key variables in shaping China's position in the global value chain. Foreign direct investment (FDI) has significantly promoted upgrading China's position in the global value chain through technology transfer and industrial structure optimization. Although the US-China trade war has brought short-term challenges, it has also provided opportunities for China's industrial upgrading and market expansion. This paper aims to provide a theoretical basis for understanding the changes in China's position in the global value chain and provide insights and strategic suggestions for future policy-making.