Abstract:Based on the contradiction between service trade barrier and manufacturing servitization, this paper analyzes the impact of service trade barrier on GVC upgrade of manufacturing industry, and uses the cross-border panel data from 2000 to 2014 for empirical test, and draws the following conclusions: Firstly, the barriers to trade in services will hinder the upgrading of GVC in manufacturing industry, reduce the degree of manufacturing industry participating in GVC division of labor, shorten the production length of manufacturing industry in the global value chain, and the barriers to trade in services will hinder the upgrading of manufacturing industry in GVC, increase the use of value-added in manufacturing export products in China, and reduce the use of foreign value-added. Secondly, the impact of service trade barriers on developing countries is greater than that of developed countries, and the impact on medium and high-tech industries is greater than that of medium and low planned industries. In terms of factor intensive industries, the order of the impact degree of service trade barriers on forward participation in GVC production activities is: technology intensive industries > capital intensive industries > labor-intensive industries, and the order of influence degree of backward participation in GVC production activities is capital intensive industries > technology intensive industries > labor-intensive industries.