Study On Development Of China's Processing Trade

Processing trade plays an important role in China's economic development. It's very significant to approach the processing trade history, status quo and development orientation, which will help to find a way to update our industrial structure.With plenty of historical data, various charts and statistic guidelines, I contemplate several problems about processing trade, like influence of processing trade on our economy, relationship between processing trade and industrial updating, policies to promote our processing trade, and so on. My analysis is based on logical reasoning and living examples.The thesis consists of five parts. In the first part, I make a retrospect of the history and policies of processing trade, and give a clear definition of processing trade. The second part focuses on analyzing the universal impact of processing trade on macro-economy and micro-economy. The third part is of much importance. Firstly I demonstrate that processing trade is in great need for developing countries because of international production integration. Secondly I redefine the comparative superiority theory with the concept of opportunity cost, so that we can understand the industrial updating feasibility of processing trade. Then I analyze the processing trade in high technology industry in detail to justify the feasibility above. At last I give an example of processing trade in Shen Zhen. In the fourth part I present some controversial views on our processing trade development as well as my comments on them in order to reach my own view. All the discourse above is aimed to find a good way to develop our processing trade, so in the fifth part I give my suggestions OB policies of processing trade.As a conclusion of this thesis, processing trade has changed our trade structure and is strongly affecting our economy. We can develop processing trade to take part in international division, which will update our industrial structure in the long term.