Study On The Transformation And Upgrading Of Processing Trade Cluster In The Coastal Areas Of China

China’s processing trade began in the seventies of the20th century. With the deepening of economic globalization and international division of labor and cooperation, China’s processing trade is developing quickly. In the1993, the proportion of processing trade’s exports exceeded the general trade for the first time, and the processing trade became one of the most important trade mode in china. The development of processing trade promotes the economic development of China, and it not only alleviates the employment pressure of coastal areas but also promotes the development of other related industries in China. Besides, it promotes the adjustment and upgrade of China’s industrial structure. But China’s processing trade is facing many problems in the developing course. Such as low degree of industrial connection, low added value, the lake of self-owned brands and the spirit of independent innovation, the imbalanced development of different regions and so on. China’s processing trade is still located in the low-end of the global value chain. With the optimization and reorganization of production factors and in the context of global industrial transfer, the problems which how to realize the transformation and upgrading of China’s processing trade, how to break the bottleneck of processing trade to meet the opportunities and challenges of global industrial transfer are becoming the focus of public attention.Firstly, this paper introduces the meanings of processing trade and its upgrading, then introduces its type and nature in order to enable the readers to have a correct and scientific understanding of processing trade through further clarifying the related concepts of processing trade. Next, this paper introduces the developing process of China’s processing trade, and its characteristics, function, limiting factors and the problems in the course of development. Through this general introduction, this paper hopes to let the readers have a more comprehensive grasp of China’s processing trade. At the end of this chapter, this paper puts forward a model about the upgrading direction of the processing trade cluster. The paper points out that we should speed up the transformation and upgrading of coastal processing trade cluster from the following five aspects:the upgrading of value chain, the upgrading of industrial structure, the upgrading of brand, the upgrading of technology and the upgrading of the business body. And then, this paper takes Panyu jewelry industry cluster which its main trade form is processing trade as a typical example to state the development of processing trade in the coastal areas of China. In this section, this article introduces the concept and classification of jewelry, the nature of jewelry industry, the domestic and international shifting paths of jewelry industry, the concept and characteristics of jewelry industry cluster, and the development status of jewelry industry in the coastal of China. Through the introduction above, this paper lays the groundwork for the Panyu jewelry industry cluster in the next section. Following, this thesis takes the Panyu jewelry industry cluster as an example to introduce the present situation and the developing process of Panyu jewelry industry cluster, and introduce the internal and external factors of promoting the development of the cluster. After that, this thesis points out that Panyu jewelry cluster industry is facing the similar problems as general processing trade cluster. Panyu jewelry industry is still located in the low-end of the global value chain,and it gets the low added value. The industrial structure is not reasonable. Besides, it lakes the self-owned brands and the spirit of independent innovation and so on. Then, this paper puts forward the countermeasures and suggestions of the industrial restructuring and upgrading of Panyu jewelry industry cluster:(1) Extend the value chain and improve the supporting facilities of industrial chain;(2) Optimize the internal structure of jewelry industry;(3) Set up the regional brand of "Panyu jewelry";(4) Enhance the capability of independent innovation and protect the rights of intellectual property;(5) Develop the manufacturing enterprises based on color gem processing;(6) Strengthen the construction of public service platform;(7) Expand the domestic market.In the last chapter, this paper points out that any industrial development from the low-end of industrial chain to high-end is a course. It will take a long time to change the OEM of coastal processing trade cluster to R&D and sales. The development of high-end industry is the goal of every industry. But the high-end industry will disappear if we don’t consolidate the low-end industry. So the government should develop the market and R&D. Even through the low-end industry transfers out of this region, the high-end industry will still stay here.