Abstract: The formation of the global value chain is caused by the agglomeration of global economy. With fragmentation characteristics of global value chain and the requirement of the internal governance,industrial cluster emerges with the geographical agglomeration,and then is embedded in the global value chain to share global benefit by the advantage of cluster. This paper discusses the embedded relations between industrial cluster and global value chain in theory,the upgrading method for embedded global value chain,and takes Fujian Province as an example to analyse the strategic choice and development while the local industrial cluster embedded in the value chain.