An Analytical Research On Trade Level Upgrading Of The Two Provinces And One Municipality

Since China's reform and opening up, our country's foreign trade developed rapidly, and it played a huge role for economic and social development. China has become a large trade nation, but has not yet become a trade power. There are many problems in China's foreign trade area that more or less affect China's process to be a power in trade. As to China's trade development, changing the trade growth mode, and promoting the upgrading of trade level is emergence. So that it has an important theoretical and practical significance to find how to successfully achieve that.On the other hand, because of the wide gap existing among the regions crossing China, nation-wide transition of trade development at one time is difficult. It is necessary to promote the more developed areas to upgrade first, which could lead the other less developed to change. The district included two provinces and one municipality of Zhejiang, Jiangsu and Shanghai in Yangtze River region, developed better in foreign trade, and its total amount increased quickly in recent years. It could be said that the two provinces and one municipality have become large trade provinces, but it is not sure whether they have been trade power. However, it is not just the quantity when considering regional trade level, but quality is also important. The profitability and stability of trade is essential. This article is actually based on this point, and tries to get practical Countermeasures and recommendations through systematical and theoretical analysis and empirical research.Firstly, this paper reviewed relative theories and literatures, and defined words involved. Secondly, it overviewed foreign trade of the two provinces and one municipality, and pointed out that the two provinces and one municipality had become major trading provinces (municipality), with the general structure analysis showing that of the region, the commodity structure was some kind reasonable, and its export markets majored in the United States and Japan. Besides, Shanghai and Jiangsu had more similarities either in foreign trade volume or in the general structure. Furthermore, the three places have differences in composition of imports and exports, in relativity of private and foreign investment in export, and in the trade development path. Thirdly, this paper constructed a regional trade level target system, including openness of the economy, the ratio of non-state-owned elements of exports, the technological level of export commodities, the changing rate in the terms of trade, the commodity dispersion, and the market dispersion, and analyzed the factors influencing changing of regional trade level targets. Fourthly, took advantage of this system, and combined with the actual data, it got some basic conclusions as follows. First, as a whole, the trade of the two provinces and one municipality was in continuous progress, with higher trade liberalization, and less risky in export commodity and market, but lower technological level, and often deteriorating terms of trade. Besides, Jiangsu did a better job in liberalization of exporters, Shanghai had the highest level in opening up and commodities' technology, Zhejiang did best in anti-risk, which showed that the three places had different comparative advantages. Furthermore, through comparison with other regions, we could see that Zhejiang had better risk indicators than the national level, but a lower technical indicator, with a slower increase than that of Shandong. Shanghai had a better constitutional level and profitability, with lower anti-risk indicators. Jiangsu did better in constitutional level and tech than the national level, but also lower anti-risk indicators. Through the analysis above, in order to upgrade trade level of the two provinces and one municipality, this paper gave out some Countermeasures and recommendations, as follows, promoted the reform of the region constitution and improved its quality, paid more attention to the application of FDI and strengthened the technical spillover effect of foreign capital, deepened reform and promoted the growth of small and medium enterprises, improve the capability of independent innovation of private enterprises and enhanced the level of industrial technology, and enhanced the construction and maintenance of external relations.