| The global economy grows slowly and the demand on international market slackens since subprime crisis in USA in 2008. Economy in China also keeps downwards, which directly affects the sustainable development of processing trade industry in Dongguan. To adapt to the new global economic normality, promote the economy development of Dongguan, Dongguan takes industrial transformation and upgrading of the processing trade as an important research topic. Therefore, research on Dongguan processing trade transformation and upgrading has an important practical meaning, in other words, we conclude upgrading of processing trade in Dongguan practice, analyze the problem in transformation and upgrading of processing trade in Dongguan, make policy recommendations transformation and upgrading of processing trade in Dongguan.By case analysis, taking Dongguan processing trade transformation and upgrading as the background, this paper sums up practice of transformation and upgrading of processing trade in Dongguan by induction, elaborates upgrading of processing trade problem in Dongguan, discusses upgrading of processing trade experience in Taiwan, South Korea and Hong Kong, and provides policy recommendations for processing trade transformation and upgrading in Dongguan. Dongguan actively promoted processing trade transformation and upgrading by government support, technology upgrading, market development and industrial chain extension, thus making breakthrough progress. In 2014, total tax of processing trade of Dongguan was amounted to 34.6 billion yuan, increased by 13.4%; 1606 brands at home and abroad were registered, 85 more brands than last year; 11.1 billion yuan was injected in R&D, up by 1.23%. Dongguan is confronted with following problems in transformation: downturn of global processing trade market decreases the demand of processing trade products; processing trade industry is restricted by tightening land, energy and environmental constraints, the structural imbalance between supply and demand of labor; misconduct of processing trade enterprises, municipalities and government results in the lack of transformation and upgrading of processing trade power; less competitive local processing trade enterprises limits endogenous growth of processing trade industry. Dongguan should play the role of government regulation, and improve the enterprise’s strength based on the reference to the experience of South Korea, Taiwan and HK.Based on the above analysis, Dongguan, in the first place, should attach more importance to government regulation, improve upgrading of processing trade policies, support enterprises to expand marketing channels, help companies out of resource constraints, help enterprises in legal personal transition, build benefit-sharing mechanism, enhance the transformation and upgrading of processing trade power; secondly it should also play the main role of enterprise, encourage enterprises to strengthen independent innovation, create their own brands, enhance learning, strengthen personnel training in order to improve the processing trade export value-added products, enhance their core competitiveness and create advantages for export processing trade in Dongguan. |