Based on the AMNE database issued by the OECD, this paper uses the multi-nested structural decomposition analysis (SDA) to deeply explore the impact of the interactions between domestic and foreign enterprises on the value-added capacity of China’s manufacturing industry in the global value chains from 2005 to 2016. We find that the value-added capacity of China’s domestic-invested manufacturing in the global value chain is about three times that of foreign-invested enterprises, and the gap between the two is gradually widening.The SDA results show that the contribution of the interaction effect between domestic-invested and foreigninvested enterprises to the improvement of the value-added capacity of the manufacturing industry in the global value chain is second only to the international linkage effect. In different technology types of industries, the interaction effect between domestic and foreign-invested enterprises contributes the most to the increase in the value-added capacity of the global value chain in low-tech industries, followed by high-tech industries. Further observation of the interactions between domestic-invested and foreign-invested manufacturingenterprises shows that the main cooperation partners of domestic-invested enterprises are still domestic enterprises, and the forward linkage with foreign-invested enterprises is greater than the backward linkage. However, the main cooperation partners of foreign-invested enterprises have shifted from enterprises abroad to domestic-enterprises enterprises since 2008, and the backward linkage with domestic-invested enterprises is greater than the forward linkage, which indicates that the way that foreign-invested enterprises participating in China’s industrial chain is mainly backward embedding. Whether from the input or output perspective, the high-tech domestic-invested enterprises interact the most with foreign-invested enterprises, while low-tech and medium-low-tech foreign-invested enterprises interact more with domestic-invested enterprises. The conclusions of this paper can provide a new perspective for the path to promote China’s manufacturing to climb to the high end of the global value chains under the new development pattern.