Study On Transformation And Upgrade Of China's Processing Trade

Facing fierce competition and fast development in this new century, the developed countries, taking its practice on its global strategy into consideration, accelerate its adjustment in industrial structure so that the tendency of international Industrial transfer is becoming deeper and wilder. To be glad for us all, our country has been in the favorable position in the process of optimizing and recombining world production factors and transferring the international industry. Processing trade in our country has developed by using labor resources to accept large-size international industry transfer. Since 1978.The processing trade has developed greatly and made great contribution to the development in our country. However, at present many issues such as unreasonable structure and low level is increasingly revealed. Thus it is urgent to promote the transformation and upgrade of processing trade in our country.As a result, the author begins this paper from relevant theory in four aspects: comparative advantage theory, competitive advantage theory, industrial transfer theory and muti-national cooperation theory. Than she analyses the international tendency to international industry transfer faced to in processing trade and the present situation indoors detailed. Based on the present situation and relative theory, the route to transformation and upgrade of the processing trade in our country are presented, that is from extension in industry chain, advance in industry and product structure, increasing the level of industry clusters, expansion in region and diversity of its body. Moreover as one of the important part, the policy of promoting transformation and upgrade of processing trade are presented. That is increasing connection of relevant industry to eliminating"flying effect"; improving policies to attract investment and to induce investment to high value-added sectors; speeding up the development of high-tech processing trade; displaying Industry Cluster advantages to promote the development of SME clusters; forming supplementary well-cooperated processing trade development pattern in east and mild-west in our country; Changing the traditional method of supervision of processing trade and improving the management of processing trade.