The Strategic Option For The Processing Trade Industries In China

The introduction of processing trade production could be dated back to the late1970s or early1980s. In the Chinese Mainland, the industry number of this line has made a rapid increase from none to, nowadays hundreds of thousands, which indicates that the tendency of the processing industry in China may well to be promising and prosperous. Its annual overcome was always taking up the most significant position in the Import and Export Sum in China, as high as above the half, even in2011, it had occupied as much as1/3of the total amount. There is no exaggerating to say that the development of the processing trade industries exerts an enormous influence on the whole level of China’s international trade business. In the very recent years, due to the severe impact of financial crisis in2007and the continual spread of European debt crisis from2009, the processing trade industries is now confronted with its unprecedented survival challenge and pressure. In addition to the current gradual decrease of the traditional abundant low-cost labor source which was considered as a comparative advantage, what should they do? That is an inevitable question the processing trade industries have to answer. Apparently, taking the transformation and upgrading will be the best option for the industries.The researcher has been engaging in customs for years, offering service and supervision to processing trade industries, thus familiar with the management of industry. The researcher employs diverse theories ranging from Value Chain, Smiling Theory, and Comparative Advantage to Product Life Cycle to justify the necessity and validity of the transformation and upgrading for the processing trade industries and to attempt to stage out the corresponding scientific path. On the basis of these theories, researcher takes advantage of the SWOT method to analyze systemically the competitive circumstance around the processing trade industries, in further, comes up with whole strategic option for transformation and upgrading. Meanwhile, the researcher expresses three detailed and practical general strategies and competition strategies in terms of the processing trade industries’specific features.Thereby, mapping out an entire and systematic strategic disposition which features a strong guidance and reality, for the transformation and upgrading of processing trade industries.