ABSTRACT
The modern enterprise has been the basis of competitive advantage beyond the individual enterprises the ability and resources, more and more and more to come from business and industry value chain, every link of the system under the coordination of the competitive advantages that should Built on a wider scope, more types of industry and resources on the basis of core competencies. This paper is based on global value chains and industrial upgrading strategies of these two theories, in the strategy of upgrading of Zhejiang auto parts. Then it use theory and practice to sum up global value chains and industrial upgrading strategies. We also analysis the general trajectory of the auto parts industry upgrade on the basis of Wanxiang.