Research On The Transformation Of Jiangsu Processing Trade When The Labor Cost Rises

Since the ninetieth of the 20th century, Jiangsu processing trade has developed rapidly, not only the scale expands rapidly, but also the level and quality improves gradually. The product structure is optimizing incessantly and the domestic gearing capability is also increasing. Since 1997, Processing trade has accounted for half of the total foreign trade of Jiangsu province and accelerate the economy of Jiangsu province enormously. But there are still some problems with the development of processing trade. For example, the value-added ratio is low, domestic gearing role is low,self-R&D and marketing ability is low, too. Specially, in recent years, prominent rise of labor cost has brought austere challenge to Jiangsu processing trade.This paper starts from the analysis on the peculiarity and function of Jiangsu. It points out that as the important way of joining the word distribution, the processing trade is the important way of entering the global production system, the main style of accept international industry transfer, the effective media of advancing the technical level. Then the paper points out many problems of Jiangsu processing trade. This paper adopts subjective and objective methods, takes profound research on the influence to Jiangsu processing trade as the labor cost has risen. At last, the paper analyses the characters which influences the upgrading of Jiangsu processing trade and gives some suggestions on accelerating the transformation and upgrading of Jiangsu processing trade.