Abstract
<jats:p>Digitalization, as a key factor, has emerged as a new driver of dynamic growth in the manufacturing industry and holds the potential to reshape the competitiveness of China’s manufacturing sector within global value chains (GVCs). Based on panel data from 17 manufacturing sub-sectors in China spanning 2000 to 2020, this paper investigates the impact of digital inputs on the GVC competitiveness of China’s manufacturing industry. The findings reveal that digital inputs exert a significant positive effect on the GVC competitiveness of China’s manufacturing sector. Domestic digital inputs significantly enhance GVC competitiveness, whereas foreign digital inputs exhibit a positive but more prolonged lagged effect. Among the sub-sectors, digital product manu-facturing, digital technology applications, and digitally driven industries contribute significantly to improving GVC competitiveness. Mechanism analysis indicates that digital inputs enhance GVC competitiveness through three pathways: technological innovation, human capital accumulation, and value chain shortening effects. Further analysis shows that digital inputs not only directly improve the GVC competitiveness of the manufactur-ing industry but also mitigate the negative impacts of trade policy uncertainty.</jats:p>