The Study Of Upgrading Problems Of Processing Trade In The Way Of The Applicability Of International Trade Theories

China processing trade has gain much development since the reform and opening policy has been taken in 1978. It has become the main trade way that greatly contribute to the development of the economy. But there are still some problems with the development of the economy. Such as lower technical factor in processing trade and smaller arousal:function to our industrial upgrading; unbalance in location development; worse trade friction and so on. We must resolute these problems successfully and promote industrial upgrading of processing trade in china.The author want to demonstrate how China processing trade will develop in the future under neo-classic trade theory structure. This thesis consists of 6 parts by which the author could logically show how processing trade will go in china.The thesis focuses on analyzing the neo-classic theory. And the author draw a conclusion that we must follow the comparative advantage law so that we can upgrade processing trade in reason. At last the author suggest a path of upgrading of processing trade in China.