The Research Of Transforming And Updating Of Processing Trade In China

Processing trade is that a country imports raw materials, components and so on,uses its production capacity and technical level to process and assemble then and then re-export, gains added value. The development of the processing trade makes a country take part in the international markets division, with its advantages in the international production;thus contributes to the country's economic development. But It also brings some adverse effects, such as resource consumption and environmental pollution.Since1996,the gross of processing trade passed general trade and became the main trade,the processing trade has been a very important contribution to the development of china economy.The development of processing trade in china has eased the employment pressure,promoted the development of supporting industries and foreign trade.However,when the processing trade brings the positive effect on the development of economy,it also brings some negative effects.For example,it accelerates the unbalanced development of economy among regions and increases trade frictions between trade parterns;Some enterprises made much high consumption and pollution,and so on.China's processing trade focused on the labour-intensive industries that are engaged in single process and assemble.Although electronics and medical equipments etc.that of technology and capital-intensive industries.are also under development.the most enterprises still focused on the low value-added stages of simple precess and assemble.Since the 2008 financial crisis. China's processing trade enterprises has faced internal and external problems.International market shrinked, orders from abroad dropped sharply,foreign investment reduced, trade protectionism increased. etc.;At home we are facing a RMB value appreciation, increase of production factor price, processing trade enterprises survive difficultly.In 2008. the amount of total import and export of processing trade was1.1 trillion dollars, an increase of 6.9% over 2007. lower than the 10.9%growth in foreign trade. In the latter part of the year of 2009. while processing trade has growed up. but recovery is slow.In order to lead the processing trade enterprises to go out of difficulty, the Government should encourage and support the transformation and upgrading of processing trade enterprises, support the transfer to the central processing trade enterprises, as enterprises explore the inland markets, and actively guide the transformation and upgrading of processing trade.