Study On Transformation Of China's Processing Trade

Processing trade appeared and has been developing quickly in the past twenty years. It has become a main foreign trade model of out country. Processing trade has contributed much to the promotion of industrial development, the increase of export and foreign exchange reserves, the balance of payment, the upgrade of industry structure and the progress of technology and economy increase, the relieve of heavy pressure of employment, etc.However, with the rapid development of foreign trade in our country, the shortcomings of processing trade which not only prevent it from taking a more active role in promoting the development of our country, but also has serious disadvantageous influence on the economy and society. These problems such as lower value-added products, lower level of technology, lack of core competitiveness can not be overlooked. At the same time, the change of economy situation home and abroad also make it enter the predicament of the development.The trade conditions and environment has continued to deteriorate. So, it is transformation and upgrade that become the necessary choice at present time. We should hold the beneficial opportunities of the international industry transfer, make good use of advantageous factors of external environment, overcome the restraint factors and realize the transformation and upgrade of processing trade in our country.At first, this paper introduces the content of processing trade and economic theories of transformation and upgrade. And then, it outlines the development history of processing trade in China and its characteristics and contribution to the economy development, analyzes the existing main problems, the necessity of transformation and upgrade, specifies the transformation direction. Finally, some suggestions are put forward to promote the transformation and upgrade of processing trade in our country.