| In the current,the global climate warming causes ecological environmentdeteriorated dramatically, which causes subtle impact of people’s production and lifestyle. Low carbon economy development pattern takes its course gradually intopeople’s horizons and sets off a new wave around the world. Since the reform andopening up, China’s urbanization, industrialization pace quickened significantly, in thesame time, energy consumption having been surging showed a trend of increasing incarbon dioxide. The data show that because China’s carbon dioxide emission growsrapidly in recent years, China has surpassed the United States in2006, as the world’slargest carbon emitter. Therefore, the implementation of low carbon economy isimminent. In the process of processing trade as a major trade, there are a lot of carbonemissions trading implied in the export commodities. Excess carbon emissions lead toenvironmental pollution and ecological damage, which endangers people’s health andcauses serious influence to sustainable economic development. Export production inShandong province use the high-carbon economic model with high-energy, high-input,low-output to lead to the imbalance of foreign trade and the development oflow-carbon economy. With the era of low carbon economy, the pressure to reduceemissions especially the export trade in Shandong province is growing. In this context,it becomes a key issue that how to upgrade of processing trade in Shandong province.The article analysis method is to the mutual combination of theoretical analysisand empirical analysis. On the one hand, the paper gets together all the concepts ofprocessing trade as well as the related concepts of low carbon economy and analysesof current situation of the development of processing trade of Shandong province,current situation of the development of low-carbon economy. On the basis, the paperanalysis the necessity of the transformation of processing trade in Shandong provinceunder the background of low carbon economy upgrade. The necessity is mainlyreflected in five aspects: because of the shortage of resources and environmentaldegradation, processing trade should achieve low-carbon sustainable development; processing trade policy tightened, which forces the transformation and upgrading ofenterprises; a decline in labor intensive and resource intensive product competitionability; to promote innovation and the leapfrog development of the processing tradeindustry; the export of the processing trade is facing the challenge of new tradeprotectionism. On the other hand, with the help of the E-views and uses OLS model,ADF test and co-integration test, Granger causality test and other modernmathematical analysis method to analyze the correlation between the total of carbonemissions research and export processing trade between Shandong province and thelong-term changes. The model test of Shandong province’s processing trade doesimply the existence of a large number of carbon emissions. It can be concluded thatthe transformation and upgrading of processing trade in Shandong Province is urgentand the development of low carbon economy be imperative. On this basis, furtherstudy under the background of low carbon economy development and the problems ofprocessing trade is needed. The problem includes that domestic energy resourceconsumption of processing trade is too much, the pressure of the ecologicalenvironment is increasing, the enterprises which have high pollution, high energyconsumption and producing resource type products is more, the products lack of coretechnology and independent brands, processing trade products have low added value,industrial linkage and spillover effect of processing trade is not enough and adverseeffects of national policy constraints. Through the analysis and summary of theproblem, we can put forward how to achieve our province transformation andupgrading of processing trade in low carbon emission reduction environment. Theeffective measures include that we should change the development mode of highcarbon intensive processing trade to the development of protecting environment, weshould enhance the capability of independent innovation of the processing tradeenterprises, we should adjust the industrial structure of processing trade and extendthe industrial value chain, we should promote the development the processing tradeindustry in low carbon economy, we should strengthen government promotion, policysupport, and the supervision of the Customs. |