Industrial upgrading path under the GVC context

Based on the global value chain (GVC) theory, this paper probes into the two-dimension industrial upgrading paths of the developing countries, which are different from the traditional industrial upgrading: the first is the promotion of enterprise competence upon the GVC from lower value-added link to higher value-added link, and from non-strategic link to strategic link on each industry value chain; the second is industrial upgrading, that is the transition of dominant industries, from labor-intensive ones to capital-intensive or technology-intensive ones. The promotion o enterprise competence is a new path of industria upgrading under the background of globalization. It could help enterprise accumulate capital, extend core technologies and expand markets, and realize the transition to the adjacent industry by competence lever, thus drive industry upgrading. GVC shortens the natural course of industrial upgrading, and makes the developing countries have opportunity and potential to establish some industries beyond their specific economic growing stage, and achieves a leap industrial upgrading. Finally, some suggestions are given about China's industrial upgrading under globalization context.