Research On Transformation And Upgrade From Zhejiang’s Major Professional Market Into International Procurement Center

After the reform and opening up, China’s economic develop rapidly and the social structure has changed significantly. Professional market plays a very important role in promoting China rural industrialization and urbanization, raising the level of commodity circulation, establishing and perfecting the market economic system,etc. After 30 years’development, the number and the scale of professional market has reached a very high level, and Zhejiang province has the most flourishing professional market, known as the Chinese "big market province". But in recent years, with the constantly rising of modern circulation network, a lot of foreign multinational business enterprises have invaded into our country. The development of professional market has been affected greatly. In another aspect, from the perspective of international trade, economic globalization is accelerating with main trend of trade liberalization and facilitation. By 2014, the global total number of regional trade agreement declared to the world trade organization is more than 500, and the agreement on trade facilitation will also be formally incorporated into the WTO rule system. Under the development trend of international trade, it is always keeping attracting the attention of scholars that how to transform and upgrade the professional market, to achieve the goal of international development and avoid the historical trap of extinction.Since the financial crisis of 2008, the sluggish global economic growth has great influence on the export of Zhejiang province. Total exports in 2009 appeared a negative growth-a drop of 13.8%, and growth of export only reached 3.8% in 2012, which sank into single digits. However, Yiwu’s international trade comprehensive reform pilot established the new trade way of "market procurement", which has led to a significant growth in export of Yiwu. New trade way for the promotion of export is very apparent. It also provides a new method for the internationalization of professional market. This also gives a new method of the research about internationalization of professional market, whether can we build professional market into an international procurement center. Based on the exploration of "market procurement" trade way, professional market will build itself into the international procurement center, to develop new competition advantage of export, to achieve transformation from domestic trade to the integration of domestic and foreign trade, to promote the internationalization of professional market.For the facilitation of research, firstly, this paper analyses the connotation of international procurement center, and confirms the goal of construction of International procurement center:the area of cluster of international procurers and procurement business with core trade way of "market procurement", running one kind of commodity, based on professional market. Secondly, this paper analyses the development status of Zhejiang professional market from six aspects:transaction size, e-commerce, international operation, foreign direct investment, exploration of new trade way and international exhibition economy, thinking that Zhejiang professional market has made very significant achievements after years of development, which provide solid foundation and feasibility for the construction of international procurement center. Thirdly, this paper embarks from trade facilitation which is the core of international procurement center, analyzing trade facilitation is how to promote transformation and upgrade of major professional market for international procurement center and teasing out three main functions of trade facilitation:trade facilitation improves trade efficiency, reduces the transaction cost, enhance export cost competitive advantage of professional market, and at the same time it will attract more international procurers, eventually the scale of export trade in professional market is expanded; trade facilitation increase the transparency and predictability of policy, institutional quality, and the safety of the FDI, which can reduce the transaction cost and risk of investment, improve the environment for investment, enhance investment return, these are more conducive to attract FDI inflow; while expanding the scale of export and attracting FDI, trade facilitation has also increased the tariff income and tax from company, so as to improve the revenue of the government, and government can therefore provide better support for the construction of international procurement center. In order to validate this view, this paper selects the infrastructure level, Internet development level, logistics development level, property rights system protection level as the factors influencing the trade facilitation, to make empirical test with export scale, FDI and government revenue of Zhejiang province, we get that trade facilitation play a positive role in promoting the scale of export, FDI and government revenue in Zhejiang province. Finally, according to the analysis, we draw conclusions and put forward several corresponding policy recommendations on the international procurement center construction of professional market from the perspective of trade facilitation.Based on the above analysis, this paper get the following conclusions:the first, it is feasible for major professional market in Zhejiang to transform and upgrade to the international procurement center; the second, trade facilitation can promote the international procurement center construction of professional market from three aspects:expanding the scale of export trade, attracting foreign direct investment and increasing the revenue of the government.Although, the analysis and conclusions in this paper are not detailed and perfect enough, but it still has certain reference significance for the transformation and upgrade and internationalization of Zhejiang’s professional market. There is still a lot of research space on the international procurement center construction of professional market, and it would be worth going ahead.