Abstract: The fundamental crux lies in the fact that those firms have been enjoying dividend from the existent system and factor conditions for a long time, which causes them to weaken their own capability to cope with and continuously rely on the exterior drivers of global production network, transnational corporations as well as the bank credit. It is needed to improve mode of network embeddedness and strengthen global integration of network resources to enhance China manufacturing firms’ status in the industrial value chain

Key words: modular global production network, China manufacturing firm, status in industrial value chain