Abstract: The theoretical developments of manufacturing industry and producer services have provided a useful analytical framework for the interaction and integration of these two industries under the condition of new international division of labor. After a certain development phase of manufacturing industry, professional requirements of manufacturing industry to producer services will definitely increase. At the same time, the development of producer services also promotes upgrades of manufacturing industry. However, the chain that China’s producer services promote upgrading of manufacturing industry is very weak. This paper argues that it is the system bottleneck which leads to a weak chain effect. The key measure is to promote a “marriage effect” between state owned producerservice firms and state owned manufacturing enterprises. The cooperation can also avoid a “hollow out effect”, which is very popular in the postindustrialization era. The business innovation, mode innovation and product innovation based on the interaction and integration of producer services and manufacturing industry are fundamental methods to quicken up a development of China’s producerservice industry.