Actuality And Countermeasure Of The Processing Trade In Central China

First, according to the theoretical discussion about processing trade(PT) and "the beginning of PT's going westward" in China this paper tries to disclose the PT's global evolutional rule from product life cycle model and technological gap model As well as, this paper tries to construct a theoretical platform to study PT properly in China by absorbing the mainstream view of PT's economic essence in theoretical field. This theoretical platform is composed of following main parts: the broad and narrow definition of PT; the PT's economic essence; the PT's evolution situation in industry and district; the theory of PT's comparative advantage in economic globalization, etc.While PT in our country is developing quickly, its was slowed in the central provinces of China because of the limitation on distance and economic growth level of integration. The ratio of exports of PT made by central provinces to that of the whole country is far less than the average level. On the one hand the central provinces' PT gives little support to local economic development and influence limitedly on the linking industry, on the other hand the relative advantage of cheap labors and a slew of idle productivity can't be transformed into real production ,even the ability to export by PT.To settle the controversy caused in theoretical field by PT and the realistic problem on how to develop PT in central province of China, this article is set to explore from a macro level the certainty of developing PT in central China, based on which we analyze the internal and external motivation to develop PT in central China and bring some suggestions. it's of intense realistic sense.The structure of the article is to begin with the PT's evolution situation in industry and district as a base, breaking through the point that PT's developing level and district distribution, linking the PT'S current situation in central China district, analyzing the advantage and disadvantage of central China districts on developing and give some suggestions on how to develop PT in central China districts by capitalizing on its own advantages to cater for the tendency of the PT's evolution situation in industry and district.