The world is currently experiencing an unprecedented period of disruption. Traditional theories of comparative advantage can no longer serve as the sole drivers for enhancing the international competitiveness of China's manufacturing industry. In this new era, the future development of China's manufacturing industry has become a pressing issue that demands immediate attention. With the rapid advancement of next-generation digital technologies and information and communication technologies, global digital trade has surged, emerging as a key engine of economic growth for countries worldwide. This trend undoubtedly presents new opportunities and platforms for strengthening the international competitiveness of China's manufacturing industry. How China's manufacturing industry can effectively leverage digital trade to secure a competitive advantage amid intensifying global competition has become a critical and urgent area of research. Using panel data from 31 provinces, autonomous regions, and municipalities in China spanning from 2012 to 2022, this study develops a comprehensive evaluation framework for digital trade and manufacturing competitiveness. It empirically investigates the impact and mechanisms through benchmark regression models, mediation effect models, and spatial econometric models. The findings reveal that digital trade has a significant positive impact on the international competitiveness of China's manufacturing industry. The effect of digital trade on competitiveness is most pronounced in the eastern region and least evident in the western region. Additionally, foreign direct investment and technological research and development capabilities are found to indirectly enhance the international competitiveness of the manufacturing industry. Furthermore, digital trade exhibits spatial spillover effects, wherein improvements in manufacturing competitiveness within one province positively influence neighboring provinces. This study offers valuable theoretical and policy implications for evaluating the impact of digital trade on the international competitiveness of manufacturing and strategies for enhancing it.
