The Development Condition And Transformation Of China's Processing Trade

China's Processing trade has gain much development since the reform and opening Policy has been taken in 1978. It has become the main way of participating the international trade and industry. Meanwhile, it becomes the important part of using foreign capital and opening to the outside world. The quick development of processing trade has changed the trade structure of our country, and influenced the development of our country deeply. So the research on the process and future trend of the processing trade has important realistic meaning. This paper combines the qualitative analysis and quantitative analysis, pay attention to put the theory and practice together. This paper is made up of four chapters.Chapter 1 makes a complete explanation on the processing trade from the theories first. And analyzed the research of domestic and international scholars in this aspect. Secendly the author analyzed the reason of the processing trade development from domestic angle and point out that the development of processing trade can develop the comparative advantage and it is the outcome of the current of times. Finally analyzed the promote function of processing trade. It pointed out the processing trade not only solved the employment problem of labor force, but also made an important function in introducing foreign capital and technology, pushing forward industrial structure adjustment, increasing efficiency of resource usage and promoting economy increase. So we must develop processing trade.Chapter 2 completely analyzed the present condition of our country's processing trade. First of all, the writer pointed out the character of our country's processing trade. Secendly, it analyzed the problems of the processing trade. Our country's traditional processing trade takes up a big part in foreign trade. This situation result in the degree of dependence upon foreign trade is too high, which make our economy lay on international market too much. The main character of traditional processing trade also attacked local material industry, and is not good for the adjustment of domestic industry structure. In the meantime, the trade friction is severe and smuggle phenomena occurs often. Thirdly discussed the influence of RMB revaluation on China's processing trade. Because the traditional processing trade lack of leading role to others industry, a great deal of foreign exchange can't be used by other department. So the pressure of RMB revaluation is too large. RMB revaluaton has different influence on different industry processing trade and its turn over will also promote the transformation of traditional processing trade. Finally it combined current condition to analyze the characteristic of processing trade under the financial crisis environment, such as the slower pace of processing trade, a great deal of processing enterprises collapse etc, and analyze the main factor of export growth.Chapter 3 indicated that the transformation and upgrade of processing trade is the only way to solve the problem. Firstly the author put forward the processing trade transformation is extremely urgent. The transformation of processing trade is the inevitable choice of the new industrialization road and the transfer of international industry. It is also inevitable to change foreign trade growth mode and realize the sustainable development of foreign trade. In the meantime, it is the inevitable choice under financial crisis and RMB revaluation. Secendly analyzed the opportunity and challenge what processing trade transformation faced. The transfer of global industry, the advance of technology and craft subdivide bring opportunities to the transformation and upgrading of processing trade. But some factors restrict the development of the processing trade, for example, the unfitness mechanism of state-owned enterprises, the low levels of production technology and some Policy factors.Chapter 4 is based on the ahead theoretical basis, it put forward the direction and concrete suggestions of the processing trade transformation. First of all, it determined the direction of transformation and upgrade. Pointed out that the transformation of processing trade should be fully considered. It should include the shift of investor, upgrading of industry, value chain promotion and region expansion. Secendly, it gives some specific suggestion about transformation and upgrade. We should try hard to promote our country's status in global productive value chain, extend the domestic value chain of processing trade and encourage the enterprise to buy local material more. The consequence can promote the development of related industry. Dependent innovation is encouraged in domestic enterprises. Not only raise the technique level of enterprise, but also pay attention to the training of qualified person. Meanwhile, consider from the region, industrial relocation should be promoted in central and west regions. The central and west regions should be combined with their own characteristics and advantages of development to carry out processing trade. The author finally analyzed the influence of processing trade's upgrading. Although it would attack national economy in short-term, but it is good for China's economy sustainable development and forming real competitive advantage.