Research On The Development Of China 's Processing Trade Based On Global Value Chain

China’s processing trade is accompanied by the reform and opening up, China make full use of the abundant cheap labor in China’s comparative advantage to develop processing trade at the background of international industry transfer at that time, by the means of introduction of foreign capital and technology, China’s processing trade developed rapidly. After30years of development, China’s processing trade has formed a certain scale, and occupied the half of China’s foreign trade for a long time. Processing trade has made a great contribution to the economic development of China, not only brought in foreign capital and technology, also has created new jobs for China, raised the level of the wages of the workers, and pulled China’s GDP growth. But in recent years, China’s processing trade problems exposed gradually in the process of development. Such as the initial comparative advantage of rich and cheap labor for develop China’s processing trade is losing. Most of China’s processing trade is labor intensive industry and has the characteristics of high input but low output, these problems exposed the plight of China’s processing trade development, sustainable development exists the problem of insufficient power. Based on the theoretical foundation of the development of processing trade and the global value chain theory research we found that the development of processing trade in China can learn from the concept of value chain upgrading in global value chain, If China’s processing trade want to get sustainable development, we must upgrade the existing processing trade and improve the position in global value chain. It both can obtain sustainable development and can obtain high added value in global trade.In this paper, through the inclusion of China’s processing trade development in the global value chain perspective, points out the problems existing in Chinese processing trade, the problem is the processing trade enterprises of our country is mainly engaged in labor intensive industry, and this type of processing trade is at the part of processing and assembly in the global value chain, it has the characteristics of high input but low output. This paper puts forward the global value chain upgrade path to China’s processing trade, that is continue to increase the capacity for independent innovation of enterprises in our country, improve the technical content of processing trade products, develop capital and technology intensive industry, gradually put our country’s processing trade from low value-added processing assembly link to brand of high value-added links. This paper also through the understanding of Japan, Singapore, South Korea’s development of processing trade, summarized their historical experience of develop processing trade in the upgrade of global value chain, combined with the current situation of the development of China’s processing trade, finally put forward some countermeasures for the sustainable development of processing trade in our country. The countermeasures are promote the development of our country’s innovation system and develop high-end processing trade, upgrading the industrial through the development of overseas processing trade, coordinating the characteristics of eastern, central and western areas to develop processing trade.