On The Evolution And Transition Of China's Processing Trade Strategy

Processing trade plays a critical role of the Chinese trade industry and has greatly influenced the development of it. Therefore, the study on current status of the processing trade and the direction of its future development is of great academic and practical significance. Chinese processing trade follows different development strategies at different stages, and it is currently experiencing a bottom neck, which yields for an immediate reformation. What are the inevitabilities of processing trade reformation? How to carry out the transition and upgrades? The author analyzes and elaborates on above key topics.The dissertation is composed of four chapters,Chapter I is the introduction. This chapter introduces the background of thesis selection. Related works are studied and reviewed in this chapter. It also illustrates the methodology and outline of the thesis study.Chapter II demonstrates the evolution of Chinese processing industry development strategy. In this chapter, the authors starts by looking at the history of Chinese processing trade development; thereafter, the Chinese processing industry development strategy since economic reformation is divided into four phases. The characteristics and contents of strategy during each development phase are introduced and discussed.Chapter III reveals the inevitability of Chinese processing trade strategic transition. Firstly, the contribution of Chinese processing trade development strategy since economic reformation is analyzed and dissertated in this chapter. The author regards the major contribution as, boosting export growth and introduction of foreign capital, facilitating Chinese industrial structure reconstruction, and promoting employment opportunity. On the base of this, the author looks into the bottom neck which Chinese processing industry is facing at the moment. He points out that,"long term tax preferences drive the trade companies to rely more on the policies";"emphasis on the production growth of the trade industry results in slow development in technology", and"dependence to labor cost advantage downgraded the international competitiveness of trade business". Whilst, the author analyzed the essentiality of Chinese processing trade strategic transition in post crisis era.Chapter IV focuses on the preliminary discussion on methodology of processing trade strategic transition. In this chapter, it is stressed that the positive effects of processing trade to Chinese economic development needs to be carried forward. On top of that, the question of how to perform the transition is studied initially. It is also raised by the author that, the main part of processing trade endeavors to be transformed, and the relocation of processing trade from West to East needs to be expedited.