A Research Of Influence On Processing Trade To Chinese Economy's Development

Since China has adopted the reform and opening policy in 1978, Chinese foreign trade has developed so fast especially the processing trade. Thus, the economic strength of China has improved greatly. However, the fast-growing foreign trade leads to more and more trade conflicts. In addition, its influence on economic development is doubted. In view of this, more and more experts and scholars major in international economy and world economy turn there eyes to foreign trade especially processing trade. They hold the view that in short term processing trade is beneficial to the economy of China but in the long term it is uncertain. This paper aims at the influence of processing trade to the Chinese economy. The result shows processing trade can push the Chinese economy to some extent. It directly increases the volume of international trade, optimizes the structure of exporting commodity and improves the international competitiveness of industrial manufactured goods. Thus, it pushes the economic growth and optimizes the industrial structure. However, since the processing trade of China is on the bottleneck period, only through improving the outside environment can the advantages of it be further taken use of and continuously push the Chinese economy.