With the formation of the global value chain, in order to consolidate and enhance the current position in the international market, companies actively strengthen their competitiveness. Firstly, based on the perspective of the global value chain, this article analyzes the development status of ZTE, and discusses the necessity of ZTE's transformation and upgrading. Secondly, qualitative analysis is used to analyze the various influencing factors respectively. Finally, based on the conclusions drawn from the above analysis, the paper determines the path of ZTE's transformation and upgrading.