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Research on China’s Manufacturing Industry Moving towards the Middle and High-End of the GVC Driven by Digital Economy

Author

Listed:
  • Rongrong Zhou

    (School of Law and Business, Sanjiang University, Nanjing 210012, China)

  • Decai Tang

    (School of Law and Business, Sanjiang University, Nanjing 210012, China
    School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Dan Da

    (School of Business, Jiangsu Open University, Nanjing 210000, China)

  • Wenya Chen

    (School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Lin Kong

    (School of Law and Business, Sanjiang University, Nanjing 210012, China)

  • Valentina Boamah

    (School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

Abstract

A country’s manufacturing industry is often an important route for national prosperity, but it is also a conduit by which a digital economy may become truly useful. This is so the deep integration of the digital economy and manufacturing industry can enhance independent innovation efficiencies, promote the development of advanced manufacturing clusters, and constantly spawn new models, forms of business, and industries. Consequently, it is crucial to improve China’s global manufacturing value chain. This article starts with an analysis of the development status and competitiveness of the digital economy in China and abroad. It establishes a structural equation and uses the latest data from the World Input-Output and Asian Development Bank databases. It introduces new variables, such as digitization, research and development (R&D) investment, and industrial scale to empirically analyze China’s manufacturing industry’s global value chain (GVC). The results show that the digitization of China’s manufacturing industry can increase the forward participation of GVC in the manufacturing industry to improve the division status of GVCs. Analyses suggest that due to insufficient R&D investment in the division of labor in the GVCs, China’s manufacturing industry is prone to low-end lock-in, inefficient industrial structures, and weak innovation ability. Consequently, the following suggestions are proposed: China’s manufacturing industry needs to accelerate digital transformation, increase R&D investment, actively participate in the division of labor in the GVCs, and enhance core competitiveness.

Suggested Citation

  • Rongrong Zhou & Decai Tang & Dan Da & Wenya Chen & Lin Kong & Valentina Boamah, 2022. "Research on China’s Manufacturing Industry Moving towards the Middle and High-End of the GVC Driven by Digital Economy," Sustainability, MDPI, vol. 14(13), pages 1-30, June.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:13:p:7717-:d:846885
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    Cited by:

    1. Qian Zhang, 2024. "The Impact of Digitalization on the Upgrading of China’s Manufacturing Sector’s Global Value Chains," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 15577-15600, December.
    2. Hongtao Wang & Wencheng Cao & Fei Wang, 2022. "Digital Transformation and Manufacturing Firm Performance: Evidence from China," Sustainability, MDPI, vol. 14(16), pages 1-18, August.
    3. Yuli Liu & Mingyi Shang & Jianwei Xu & Lei Zhang & Honglian Hua, 2023. "Value Chain and the Integrated Development of Manufacturing and Modernized Services: A Case Study of Shandong Province, China," Sustainability, MDPI, vol. 15(2), pages 1-25, January.
    4. Muhammad, Tufail & Ni, Guohua & Chen, Zhenling & Mallek, Sabrine & Dudek, Marek & Mentel, Grzegorz, 2024. "Addressing resource curse: How mineral resources influence industrial structure dynamics of the BRI 57 oil-exporting countries," Resources Policy, Elsevier, vol. 99(C).
    5. Feiyan Han & Herui Wang & Hongyu Lv & Bo Li, 2022. "Research on Manufacturers’ Referral Strategy Considering Store Brand Retailers and Traditional Retailers," Mathematics, MDPI, vol. 10(18), pages 1-23, September.
    6. Zheng, Handong & Ye, Xin & Chen, Rongsheng & Chen, Yi, 2025. "Resilient high-end equipment manufacturing supply chain design with irreplaceable suppliers: An IFTOPSIS-MOMIP hybrid model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 195(C).
    7. Qian Zhang & Qizhen Wang, 2023. "Digitalization, Electricity Consumption and Carbon Emissions—Evidence from Manufacturing Industries in China," IJERPH, MDPI, vol. 20(5), pages 1-21, February.
    8. Huang, Xiaobing & Xie, Jiawei, 2024. "The impact of input efficiency on the value chain embeddedness of rare earth enterprises," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 604-616.
    9. Hui Na & Conghui Luo & Anyin Jiang, 2025. "Influence of New-Type Industrialization on High-End Manufacturing Industry: Discussion Examining Threshold Effect of Industrial Chain Resilience," Sustainability, MDPI, vol. 17(20), pages 1-24, October.
    10. Wenqi Li & Qi Li & Ming Chen & Yutong Su & Jianhua Zhu, 2023. "Global Value Chains, Digital Economy, and Upgrading of China’s Manufacturing Industry," Sustainability, MDPI, vol. 15(10), pages 1-25, May.
    11. Bergougui, Brahim & Murshed, Syed Mansoob & Shahbaz, Muhammad & Zambrano-Monserrate, Manuel A. & Samour, Ahmed & Aldawsari, Mohammed Ibrahim, 2025. "Towards secure energy systems: Examining asymmetric impact of energy transition, environmental technology and digitalization on Chinese city-level energy security," Renewable Energy, Elsevier, vol. 238(C).
    12. Ma, Dan & Tang, Jiaqi & Jiang, Xuemei, 2023. "Effects of digital global value chain participation on CO2 emissions embodied in digital exports: New evidence from PSTR approach," Energy Economics, Elsevier, vol. 126(C).
    13. Senhua Huang & Wenzhong Ye & Feng Han, 2023. "Does the Digital Economy Promote Industrial Collaboration and Agglomeration? Evidence from 286 Cities in China," Sustainability, MDPI, vol. 15(19), pages 1-24, October.
    14. Kangxian Ji & Xiaoting Liu & Jian Xu, 2023. "Digital Economy and the Sustainable Development of China’s Manufacturing Industry: From the Perspective of Industry Performance and Green Development," Sustainability, MDPI, vol. 15(6), pages 1-23, March.
    15. Chao Ge & Fan Yang, 2025. "Patterns of spatial concentration and drivers of China’s migrant population: evidence from the Greater Bay Area hinterland," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-12, December.
    16. Bie, Fan & Yang, Yifan & Shen, Hebin & Zhao, Qi, 2024. "Inclusive digital economy, resource dependence and changes in the urban energy mix: City level analysis from China," Resources Policy, Elsevier, vol. 92(C).

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