The Strategy Study Of Upgrading Problems Of Processing Trade In SDFC

During the about30years after the implementation of reform and opening to the outside world, the growth rate of international trade is faster than the growth rate of national economy because of the vigorous development of processing trade. Half of the share of total import and export volume is contributed by processing trade since1996. Currently processing trade has covered most of the industries. However, the processing trade in China presents in the industries of labor-intensive, low technology and sophisticated technology and has the poor quality in manufacturing. The traditional processing trade is facing great pressure as the labor cost has been increasing and the trade barrier turns to be high frequency. So the upgrading problem of processing trade is to be the focus of studying by the academic community. SDFC is a small and medium-sized Enterprise which engages in the manufacturing of pharmaceutical intermediate. SDFC is facing the challenge from the international pharmaceutical industry, so studying on the upgrading of processing trade has the great significance for SDFC.Based on the Comparative Advantage Theory and Value Chain Theory, the article demonstrated the issue from six aspects. The first, briefly describe the studying background and structure; The second, introduce the basic theories for the processing trade; The third, from the external environment analysis, including regulation, technology, economic and competition environments; The fourth, from internal environment analysis, combine with the field survey; The fifth, on the basis of external and internal analysis, establish the critical factor matrix, come out the key conditions for SDFC’s upgrading of processing trade and the area needed to be improved; The last, summarize the studying on the upgrading of processing trade of SDFC, and conclude some experiences for the reference by other companies.