| Since the reform and opening up, China's processing trade from scratch, from small to big, has the main form of China's foreign trade. China's processing trade has played an irreplaceable role on promoting economic growth, attracting foreign investment, expanding employment, promoting technological progress, optimizing the industrial structure and so on. But on the whole, China's processing trade mainly produces labor-intensive with low-tech and low added value and has problems on unbalanced regional development, low industry association, low rate of domestic procurement and so on. In recent years, with the RMB appreciation and the rising on labor costs and environment costs, China's processing trade is facing pressure to transform and upgrade. In order to accelerated transformation of the growth mode of China's foreign trade, our country has adopted a series of policies to actively adjust and promote processing trade on the transformation and upgrading so that promote the economy rapid and healthy development. While in the critical moment of transformation and upgrading of processing trade, the international financial crisis makes the global economy hit and decline in external demand, but also gives seriously impact on manly export-oriented processing trade in China. Therefore, in the new situation, the research on China's processing trade how to balance economic growth and accelerate the pace on the transformation and upgrading provides many valuable reference on sustainable and healthy development of China's processing trade and participation in global division of labor. In addition to introduction, the body of this article includes four parts, the contents are as follows:The first part describes the pre-crisis situation of China's processing trade.Firstly, from broad and narrow aspects define the processing trade, which includes the processing and feed processing of two types. Then introduce the characteristics of the development of processing trade. In the trade volume, China's processing trade has increased year by year; in the main structure, the mainstay of China's processing trade is foreign-invested enterprises; in the way of trade, China's processing trade has focuses on feed processing; in the product structure, China's processing trade is changing from labor-intensive to capital-intensive structure; in regional distribution, China's processing trade mainly concentrated in eastern coastal areas. Lastly, analyze the problems of China's processing trade. We need to correctly understand and solve these problems, which is the key to China's processing trade on the success of on the transformation and upgrading. The problems of China's processing trade include: at the lower end of global value chain, lower value-added rate, loss of profits; lower levels on industry association and domestic procurement; weakened on traditional comparative advantage in the labor force; increased tread friction with international community; imbalanced on regional distribution structure. The problems of China's processing trade has become increasingly prominent so that our country has began to actively adjust China's processing trade by a series of policies since 2006, which also means China's processing trade has entered a critical period of the transformation and upgrading.The second part from both internal and external environment describes that the financial crisis has taken the new challenges to the transformation and upgrading processing trade in China. Due to lower external demand and some existed problems of China's processing trade, China's processing trade has week ability to withstand fluctuations in internal market since the financial crisis so that has been given an unprecedented hit. The financial crisis is not only taken trouble for China's processing trade enterprises, but also disrupted the former adjustment strategies of the established pattern of China's processing trade, which also has brought unprecedented challenges to China's processing trade. Internal environment of the challenges include reduction on the number of enterprises engaged in processing trade and demand of labor; faster appreciation for the RMB to dollar; more difficulty for SME financing. Eeternal environment of the challenges include decreasing demand from foreign markets, more competition for the whole market; increasing trade protectionism and trade friction.The third part mainly analyses opportunities under the influence of finance crisis on the transformation and upgrading of processing trade in China. The negative effects from the financial crisis cannot be avoided. We should have a keen insight to find the opportunities for the financial crisis to economic development in China, specifically including undertaking technology transfer and accelerating industrial restructuring, expanding domestic consumer market and accelerating changes on economic growth mode and the influx of a large number of talents to provide adequate talent pool.The fourth part presents strategies that how to actively promote the transformation and upgrading of processing trade in China. The arrival of the financial crisis has slowed the pace of the transformation and upgrading of processing trade in China to some extent, but we also see new opportunities from the crisis. Therefore, in the new situation, we should complement the macro and micro strategies, combined with the original upgrading path and generally pay more attention to new needs and new market development, structural adjustment of the layout and corporation on financial in order to stabilize economic growth and promote the transformation and upgrading of processing trade in China. Macro-level strategies include stabilizing the exchange rate, properly handling trade friction; perfecting related policies of processing trade, reforming its regulatory system; strengthening the credit support, widening financing; promoting the central and western gradient transfer, encouraging the development of overseas processing trade; strengthening the capacity of domestic related industry, developing industrial clusters. Micro-level strategies include expanding new export markets and domestic markets; strengthening technological innovation, creating of own brand and marketing strategy; focusing on human capital investment, achieving talent upgrading. |
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