Abstract: As one of the important means to realize the strategy of manufacturing power, the input service of manufacturing industry plays an important role in promoting the upgrading of value chain. Based on the data of the world input-output database from 2000 to 2014, this paper empirically examines the impact of manufacturing input service on China′s participation and division of labor in global value chain, and examines the relevant mechanisms. The results show that:(1) on the whole, there is a “ceiling” effect on China′s participation in the global value chain, that is, with the strengthening of the trend of manufacturing service, its role in promoting China′s participation in the global value chain is diminishing marginally,while it has a significant positive role in promoting the division of labor in manufacturing industry.(2) There are some differences in the relationship between different service inputs and China′s manufacturing industry′s participation and division of labor in the global value chain. Compared with traditional service inputs(wholesale, retail and transport services), modern service inputs(Telecommunications and financial services) play a more significant role in the upgrading of the value chain. At present, due to the low penetration of foreign services, the dominant domestic service input plays a more significant role in promoting the division of labor in China′s manufacturing industry; the manufacturing industry with high service utilization has a greater utility in upgrading the value chain than the industry with low service utilization. (3) The service level of China′s manufacturing industry is relatively low as a whole, which has not reached the optimal critical level of manufacturing industry input service, and still has a lot of room for improvement. (4) The mechanism test shows that R&D innovation is a possible channel for manufacturing industry to deepen the participation of value chain. However, there is no promotion effect on the position of value chain division through R&D innovation, and there may be other channels. This study has important policy implications for China to develop service-oriented manufacturing industry and integrate into global value chain production division.

Key words: Key words：manufacturing service, value chain upgrading, participation, division of labor status