Abstract: In the face of the New Normal of China′s foreign trade, Chinese enterprises will participate in the global production more deeply. In the case of incomplete contract, this paper uses the data of the world input-output database to measure the average position of American and Chinese industries in the value chain, and uses regression method to analyze the influence of intra-company trade import share, factor intensity and import elasticity on enterprise production organizational model, while measuring China′s position in the global value chain. The results show that there is a positive and stable relationship between “downstreamness” and intrafirm import share, which only depends on the demand elasticity of buyer′s industry; when the production inputs can be complementary, companies choose to give up control of the upstream to encourage upstream firms to invest, because this investment will have a positive spillover effect on downstream firms; when demand is not elastic, the opposite can be predicted, that is, the integration of upstream phase is optimal choice, then we should be able to see the outsourcing of value chain downstream.

Key words: international production organizational patterns, import demand elasticity, value chain