Li Xiaohua pointed out in the article Evolution Trend of Global Industrial Structure of Manufacturing Industry and China's Countermeasures in the first issue of Research on Financial Issues in 2021 that in recent years, the global manufacturing value chain has shown a shortening trend, which is the result of multiple factors. First, developing countries, especially China, have improved their innovation capacity and supporting capacity. Many intermediate inputs have been produced domestically without having to purchase in the international market. Second, with the growth of economy and the improvement of income level, the size of the domestic market of developing countries continues to expand, and more domestically manufactured goods are sold locally rather than exported abroad. Third, robots, artificial intelligence, industrial Internet, intelligent manufacturing and other technologies continue to mature, and "machine replacement" is more common. The capital intensity and knowledge intensity of the industry continue to increase, and the layout of the industrial chain that was easy to realize global labor cost arbitrage has become profitable at home. The manufacturing industry backflow promoted by the United States and other countries after the international financial crisis also has a certain impact on the shortening of the global value chain. In addition, factors such as the improvement of supply chain response speed caused by production close to the market, a series of trade frictions initiated by the United States, and the improvement of supply chain resilience caused by value chain localization also played a role in shortening the global value chain. (Source: Economic Daily)