The Research Of Our Processing Trade Industry’s Upgrading:Based On The Comparison Of GVC And NVC

With the development of productive forces, scientific and technological progress, international trade, finance and investment liberalization, multinational corporations put process or production of different sections in different countries in order to pursuit profit maximization according to factor intensity in different countries. This new form of international division of labor makes processing trade in China embed into the global production system. Processing trade has played an active role in the promotion of regional prosperity and the use of foreign capital, and has introduced advanced technology and scientific management to speed up the process of China’s industrial upgrading. However, China’s processing trade still exist some problems, such as the low degree of industrial linkage, short industry chain, low value-added products and unbalanced regional development. At present the majority of China’s processing trade enterprises are labor-intensive or in labor-intensive sectors of capital and technology intensive industries participate in international division of labor, a number of neighboring countries with lower labor cost advantage pose a threat to China’s processing trade development.The article is divided into six chapters, the first chapter for the introduction, describes the background and significance of topics, as well as the framework of this article, research methods and research of innovative point and inadequate; chapter II the study of processing trade at home and abroad literature review; third chapter describes the processing trade of China’s the development status and current problems, as well as the comparison of GVC and NVC; fifth chapter describes the necessity of building GVC-NVC and how to build it; sixth chapter uses the case of Galanz to prove the feasibility of building the Global-National value chain:the last chapter is suggestions.The innovation of this paper is that through the analysis of the connotation, upgrade paths and obstacles under GVC and NVC, point out that we should make use of Global-National value chain to complete the processing trade industry’s upgrading.