Chinese manufacturing industry is blocked from integrating into the global value chain by two ends. “The Belt and Road” initiative provides a historical opportunity to upgrade Chinese manufacturing industry, also presents a challenge in search and design, management and brand marketing. This paper, based on DEA and VAR models to empirically study the factors and theory of rising value chain in manufacturing industry with results indicating that foreign direct investment, technical innovation and industrial servicing play the key roles, of which foreign direct investment plays the key role, followed by technical innovation and then industrial servicing. This paper presents suggestions on intensifying nation's cooperation, constructing double value chains, boosting technical innovation, exerting anti-graded transfer, transforming to manufacturing service, and supporting manufacturing servicing, which can upgrade manufacturing industry and promote China's position on manufacturing in global value chain.

Optimizing business environment is playing a key role in urban innovation as China is pushing forward economic transformation. This paper, based on 32 cities' data provided by Guangdong-Hong Kong-Macau Big Bay Institute, establishes a regress model of ordinary least square (OLS) to verify relation between business environment and technical innovation yield capacity. Length of opening business rather than business environment is selected to be a tool variable overcoming inner issues, showing that excellent urban business environment boosts technical innovation yield capacity through a linear model verifying the relation between six business environmental indexes and urban technical innovation yield capacity. Urban soft environment and infrastructures directly impact technical innovation yield capacity. This paper presents suggestions for optimizing business environment on focusing on urban soft environment and infrastructure construction, executing tax-reduction policies, improving financial services, boosting port goods transfer capacity, increasing trade convenience, intensifying trans-city to global technical trade and exchange so as to raise urban technical innovation level.