Abstract: China is currently promoting a higher standard and greater level of financial opening-up to achieve a new type of industrialization by deepening investment in manufacturing financial services. On the other hand, the Third Plenary Session of the 20th CPC Central Committee pointed out that it is necessary to strengthen the financial security mechanism of open conditions, and focus on strengthening the construction of macro-prudential management system. In this context, capital controls will have a greater impact on financial services input to promote the upgrading of manufacturing. Existing literature has explored the promotion impact of financial service input on the status upgrading of manufacturing value chain, but it is generally limited by the early data of WIOD. Meanwhile, few studies have explored the heterogeneous impact of financial service input on the status upgrading of manufacturing global value chain under capital control.Therefore, this paper uses the input-output data of ADB database from 2007 to 2021 to examine the impact mechanism of financial service input on the climb of global value chain in 14 manufacturing industries in 42 countries, and further tests the weakening impact of capital control measures in host countries on the promotion of financial service input to the global value chain of a country’s manufacturing industry.The conclusion shows that financial service input can promote the upgrading of a country’s manufacturing value chain by improving the level of R&D innovation and capital allocation efficiency, while different capital control measures in different countries will have a heterogeneous weakening effect on this promotion effect.

Key words: financial service input, global value chain, capital control