The Path Exploration About Upgrading Of Chinese Processing Trade Based On The Global Value Chain

After the reform and opening up, China’s processing trade continues to develop, effectively promote the development of our national economy. Processing trade increased national income, solve labor employment and promoting regional economic development, promote the optimization and upgrading of industrial structure and technological progress has made a great contribution. From the perspective of global value chains, processing trade has become an important way to participate in the international division of labor, integration into global value chains. Processing trade value chain to show the complete value-added process, this process includes raw materials and parts procurement, processing, transportation and warehousing, as well as all aspects of marketing. China’s processing trade is through integration into global production networks, embedded in global value chains develop.This paper analyzes the development and transformation and upgrading of China’s processing trade issues based on the use of global value chain theory. Firstly, the connotation of trade and upgrading of processing trade processing were analyzed using the theory of transformation and upgrading of processing trade conducted more in-depth discussion. Then this paper analyzes the current situation and the status of processing trade in China’s processing trade in the global value chain. First, from the size of the processing trade, the specific way, regional distribution, export commodity structure point of view, constitute the main body analyzes the status quo of China’s processing trade, and then analyzes the use of trade competitiveness index and smiling curve analysis of China’s processing trade in the global value chain the industry position. Then, this paper analyzes the necessity and feasibility of the transformation and upgrading of processing trade. Then this paper discusses the main factors in theory several of China’s processing trade transformation and upgrading of the global value chain perspective, on this basis, the added value of processing trade empirical analysis. Finally, this paper gives the main results of the empirical analysis of China’s processing trade upgrade path.This paper argues that, although China’s processing trade has made great development, but the development of the situation is not optimistic, facing a series of problems. From the perspective of the global value chain, China’s processing trade enterprises are mainly engaged in low-end assembly and processing sectors, getting low income, at the low end of the global value chain, and not balanced regional development. Under the dual pressures of the international environment and domestic environment, China’s processing trade needs to upgrade. In this paper, the global value chain theory as the main theoretical basis, according to the status quo of China’s processing trade made a specific path of transformation and upgrading of China’s processing trade, namely to extend the territory of the value added processing trade enterprises, promote the processing trade to extend the chain; promote processing trade diversion to the central and western regions; the implementation strategy of going out to encourage domestic enterprises to go abroad to develop overseas processing trade.