Study On Transformation Of China's Processing Trade

With the background of economic globalization, processing trade, a special form of trade, provides developing countries the opportunity of participating the international division of labor and involving in the global production systems of transnational corporations in the broader fields.China seizes this opportunity promptly to expand export, increase domestic employment, and promote technological progress and industrial upgrading by developing processing trade. Today, China's processing trade has covered most of industries and it has played an important role in our national economy and foreign trade. The healthy development of the processing trade will be directly related to China's overall economic development trend, so the research on transformation of processing trade is important and essential. This paper tries to integrate theory with practice. It proves the necessity of transformation of processing trade by analyzing the status quo and problems of China's processing trade. Then, it notes the direction of comprehensive transformation of processing trade. Finally,it puts forward recommendations. This paper consists of four parts: introduction of processing trade; China's processing trade development; analysis of the transformation of processing trade; recommendations for accelerating the transformation of China's processing trade.The first part of this paper outlines the processing trade. Firstly, it introduces the content of processing trade; secondly, it reveals the characteristics of processing trade by comparing general trade and processing trade; finally, some economic theories are quoted to explain why processing trade can develop rapidly in China and other countries. The theories mainly include comparative advantage theory, and trade and investment integration theory of transnational corporations. Theoretical analysis proves that...