The Study On Situation And Development Of Processing Trade In Shanxi

With the accelerated process of economic globalization and the expansion internationalized. Production, the processing trade has become an important mode to conduct international trade, pushing greatly forward the economic growth and restructure of economic structure in the developing countries in particular. After 20 years of development, China's processing trade now accounts for half of China's foreign trade volume. It has become a significant way in which China furthers it's opening-up and conducts international economic exchanges and cooperation, and it also plays an important role in earning foreign exchange, utilizing foreign funds, increasing employment and spurring economic growth. In the eastern coastal region, the processing trade, with the increase of labor and land costs, is experiencing prompt transformation and acceleration. In Shanxi province which is located in central inland region and where processing trade started later, the processing trade, compared to that in eastern coastal region, develops at a relatively low level and in a relatively smaller size. As the international industry transfers and the processing trade's regional context shifts, Shanxi province should integrate it's resources to take partly over the processing trade industries transferred from the eastern costal region. The government policy-makers should introduce various preferable policies, an overall planning which accords which the principles of economic development and corresponding measures,encourage enterprises in the province to engage in processing trade, and made adequate preparative for the transformation and upgrading under the premise of processing trade's sustainable growth in the province. This paper, based on the current state of the processing trade in Shanxi province, discusses how to further the development of processing trade in the province. The paper is divide into four parts: the first part is an overview, and explains the necessity to develop processing trade; the second part, based on the current existing problems and causes with the processing trade in depth, offering well theoretical preparation for amplifying measures to spur the development of processing trade; the third part summarizes the advantages in Shanxi to develop processing trade; the fourth part focuses mainly on how Shanxi to adjust to the international industry transfer process and to take the opportunity to under take the labor-intensive industries transferred from the eastern coastal region.