The Analysis Of The Relationship Between The Increasing Of Labor Cost And The Trade Structure Of Pearl River Delta

As the leader position of China's opening up policy, the Pearl River Delta has maken a great contribution on China's overall economy development, especially the development of foreign trade. Pearl River Delta region with the processing trade in the domestic foreign trade structure has created many myths.In the process of rapid development, over-relying on low-cost labor force, the processing trade of the Pearl River Delta has led to many problems which can not be ignored, the supporting ability of enterprises are still weak, low value-added processing trade, the lack of independent R&D and marketing capabilities. In recent years, "Labor Shortage", government policies, price increases, the minimum wage increase and other factors brought about a sharp rise in labor costs, which caused enormous challenges in the development of Pearl River Delta.As the Pearl River Delta trade structure based mainly on processing trade, the rise in labor costs changes a lot. The growth of total trade in the Pearl River Delta region decreases; the investment in processing trade of foreign investment enterprises reduces, the proportion of processing trade decreases;the level of high technology and the proportion of higher value added products increases.Achieving the transfer of processing trade and optimizing of trade structure in the Pearl River Delta region, the enterprises should speed up the adjustment of development strategy, implement and adhere to the direction of sustainable development, while promoting some of the processing trade to less developed areas.Covered with low labor costs, enterprises with low efficiency of processing trade over relyed on low cost labor force and was lack of motivation to upgrade the industrial structure. The rise in labor costs, to a certain extent, forces the processing trade enterprises to upgrade industrial structure transformation and optimize the trade structure, increase the added value of export products, thus enhancing the products competitiveness and bringing greater benefits of foreign trade to the Pearl River Delta.