The development level of advanced manufacturing industry is a significant factor to measure a country's comprehensive and core competitiveness. Although China is an important hub in the global value chain network, its advanced manufacturing industry demonstrates a low-end link in the global value chain system. In recent years, with the rapid economic development of emerging economies represented by China, global value chain differentiation has been increasingly prominent among the emerging economies. These phenomena challenge the leading position of developed countries in the division system of global value chain, that is, the global value chain is reconstructing. Therefore, China proposes to build a new development pattern of domestic and international double circulation and mutual promotion in order to promote the high-quality development of China's economy. Most scholars have deeply studied and analyzed the mechanism of servitization from different perspectives through theoretical and empirical studies. The research shows that servitization plays a positive role in promoting the transformation and upgrading of China's manufacturing industry, and it provides useful reference for the transformation and upgrading of China's advanced manufacturing industry,and helps the manufacturing industry to realize value co-creation and reconstruct competitive advantages. On the basis of meeting the daily production needs of the manufacturing industry, it continuously integrates services into the manufacturing of advanced manufactured products by enriching service content and innovating the form of services. At present, the academic and industrial circles have reached general consensus on solving the practical development dilemma of China's advanced manufacturing industry in the global value chain system by servitization.#br#Using the method of system dynamics, this paper establishes a servitization-based global value chain upgrading system for the advanced manufacturing industry, and then analyzes the internal mechanism of its upgrading development. First, the study analyzes the key dynamic factors affecting the upgrading and evolution of advanced manufacturing global value chain, and on this basis, establishes a key power subsystem to assist its development. Second, it combines the two centers of servitization and global value chain upgrading according to the relationship between the value chain and information flow among subsystems, builds a consequence diagram based on servitization in global value chain upgrading for advanced manufacturing industry and obtains feedback loops. It builds a stock flow diagram for the overall system based on the feedback loop. Third, Vensim PLE is used to build a servitization-based global value chain upgrading and evolution system dynamics model of advanced manufacturing industry, and then simulation is carried out to further verify the theoretical derivation.#br#The following conclusions are drawn. (1) Driven by technological innovation capability, servitization,human capital and capital stock, the position of advanced manufacturing industry in the global value chain is being upgraded year by year, and the speed to the upstream of the value chain is gradually accelerating, but the evolution speed to the downstream of the value chain is smaller than the former two. (2) China's advanced manufacturing industry can achieve a position rise in the global value chain status through servitization. Technological innovation capability is the main driving force for China's advanced manufacturing industry to climb upstream of the global value chain, and human capital is the main driving force for China's advanced manufacturing industry to climb downstream of the global value chain.#br#This paper provides a theoretical basis for the development of China's advanced manufacturing industry and the formulation of relevant policies by the government. It enriches the integrity and systematicness of the research in the evolution process of advanced manufacturing enterprises' global value chain upgrading. There is a certain significance for guiding advanced manufacturing industries to achieve global value chain upgrading through servitization. China's advanced manufacturing industry still needs to improve its technological innovation capability, and this process should focus on increasing the investment in scientific research and the training of innovative talents. At the same time, China should make greater efforts to develop information technology, actively promote the integration of service industry and manufacturing industry, and provide a solid foundation and guarantee for the servitization of advanced manufacturing industry.#br#
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