Traditional Industry Upgrading Analysis Based on Global Value Chain

In recent years, Chinese industry has got into difficulties. To accelerate the pace of industrial upgrading is a major strategic task faced by China. in the present stage of economic development. This article generates three major processes of how to realize traditional industry upgrading step by step based on global value chain. First, following the tide of industrial globalization is the key to China's industrial upgrading to dock with the developed countries advanced technology system and to keep continuously progressive technology innovation in the first place. Secondly, China's industry has the necessity of keeping the low element cost as its comparative advantages. By reducing the cost, promoting the industrial efficiency and realizing the optimal allocation of resources, China can improve the overall competitiveness of industrial cluster as well as the comprehensive competitiveness of the industry accumulated area. Finally, value-added ability is a primary factor restricting the status of Chinese industry value chain. Only by constantly raising value-added ability and mastering technical advantages can Chinese industry get rid of the passive position in GVC production networks. Meanwhile, actively embedding in high value-added links and enhancing profitability in the division of GVC are also inevitable.