A Study On The Issue Of Inter-product Labor Division And The Developing Strategy For China Processing Trade

From nineteen eighties, one of features of international labor division is development of inter-product labor division, it cause a great change in global production and trade, and affect development of Chinese processing trade. This paper try to answer thequestion——"Under the background of inter-product labor division, hot to developChinese processing trade? ". The significance of the discussion is that it helps us to make clear the development direction of Chinese processing trade, find problems existing in Chinese processing trade, and make some changes in Chinese processing trade policy. The paper orderly discusses the following sub-questions:" How did inter-product labor division affect global production and trade?", "what is the relationship between inter-product labor division and processing trade?", "what is the development strategy goal and routine of Chinese processing trade?", "what is the problem of Chinese processing trade?", and "how to develop Chinese processing trade?" From the analysis, this paper get the following result: First, Under the background of inter-product labor division, the strategy of Chinese processing trade is to improve ability and level of inter-product labor division, take up the high value-added position in global value chains. Second, Chinese processing trade mainly use poor quality labor to take part in inter-product labor division; it has a low domestic purchasing rate, it has little thing to do with domestic production. Third, the suggestion for Chinese processing trade are: Strengthen economic conditions for development of inter-product labor division; bring up dynamic comparative advantage, improve the qualities of production factors; push processing trade to move towards high value-added position; increase technology and knowledge factor during the processing; increase domestic purchasing rate.