In the context of the continuously evolving global economic and trade landscape, there exists no“onesize-fits-all”solution for the worldwide formulation of digital intellectual property protection policies. The imperative need for enhancement in China’s regulations concerning digital intellectual property underscores the exigency for refinement. This study, grounded in the practicalities of China’s GVC development, investigates the bidirectional effects and mechanisms of digital intellectual property protection in import and export countries on China’s participation in the GVC.The findings reveal that: (1) Following the mitigation of endogeneity concerns, areduction in the distance pertaining to digital intellectual property protection facilitates an enhancement in China’sparticipation in the GVC. Furthermore, upon further distinction between legislative disparities and regulatory variations, it is discerned that the reduction in discrepancies in digital regulatory standards exerts a more pronounced influence on enhancing GVC participation. (2) Heterogeneous testing demonstrates significant disparities in the impact of national economic development levels, industry digitization degrees, Free Trade Agreement (FTA)signings, and variations in digital intellectual property rights on GVC participation. (3) Mechanism examination unveils that industries characterized by higher degrees of digitization tend to exhibit heightened levels of digital intellectual property protection, thereby amplifying China’s involvement in the value chain. This study furnishes valuable policy insights for China, facilitating a more nuanced comprehension of the pain points surrounding digital intellectual property protection within the evolving global digital trade landscape. It advocates for the amelioration of China’s disadvantaged position within the GVC and the realization of strategic advancement opportunities.