Research On Transformation Paths Of Processing Trade Based On Global Value Chain Perspective

Since the last part in 20 th century, characterized by departure from production and sales, purposed by the share of global value chain, method by global purchasing of parts, organized by global production network, the processing trade has become a trend of world trade. It is an important means to participate in the international division and to undertake international industry transfer of the developing country.Since the beginning of reform and open up, our country take advantage the labor resources and preferential policy have attracted most foreign investment and developed processing trade. Processing trade has become the main method of participating international division and inserting into the global value chain. It plays an important role in increasing the volume of foreign trade and promoting economic growth. However C hina’s processing trade always in the lowest position of global value chain and has a series problem.Since the global financial crisis of the year 2008, the econo my of European and the United States has slow down. The continuous appreciation of RMB, the protectionism of international trade, the intensified of trade friction, coupled with the domestic labor costs rise gradually makes our country’s processing trade development more and more difficult. At the same time, china is during the complex transformation period of economy, continue to deepen reform and open up compre hensively. Hence, faced the background and new trends of the domestic economic transition and co mplex international environment, how to promote the transformation and upgrade of the processing trade and seek for new path is needed to solve.This article try to analysis the nature of processing trade deeply from the perspective in global value chain, processing trade is one link in global value chain and located in the most low-end, It import raw and materials then export after process simply, form the operation of two-side outside; construct income distribution model and draw the conclusion that the low-end processing trade enterprise’s income is less, and reconsider the necessity of transformation of processing trade.Choosing two cases that achieve transform successfully and design the path of transformation of processing trade from the level of processing trade enterprise and strategic transformation of government level. Use case study method to verify the transformation path of Liaoning province. Through the analysis of the specific circumstances of the development of processing trade in Liaoning, put forward development path suit for the native garment processing trade and mechanical and high- tech enterprises of Liaoning and give suggestions for government to promote processing trade transformation. Hope that through this article to indicate the direction of processing trade in Liaoning province and even in china, contribute a little strength to promoting the economic development.