Study On Upgrading Of China's Processing Trade Based On Global Production Networks

Since the first processing trade corporation was built in 1978, China's processing trade has developed steadily for more than thirty years. In 1996, processing trade's total amount firstly exceeded general trade's. Since that, it has always been the main trade way and made historical contributions to the growth of economy. However, there are many shortcomings with the development of processing trade, such as low content of technology, unbalanced regional distribution and continual international trade conflicts. These problems have seriously prevented upgrading of industrial structure and continual economic growth. It is imperative under this situation that we do research on how to upgrade China's processing trade's corporations.There is a close relationship between global production networks and processing trade. Almost all processing trade can be explained by global production networks. So, it is very essential that we study on upgrading of processing trade based on global production networks. Firstly, this paper introduces basic theory of global production networks and processing trade. Secondly, this paper generalizes global production networks, knowledge transferring and diffusion mechanisms and industrial upgrading. Thirdly this paper looks back the process of processing trade's development and deeply analyzes characters of processing trade in our country. Fourthly, this paper expounds meaning and status of processing trade's upgrading based on global production networks. Finally, we give some available advice on how to upgrade processing trade from the point of view of global production networks.