| In April of 2000, State Council approved setting Export Processing Zones(EPZ) for processing trade to develop it healthily, regulate its management and drive regional economy. During the past eight years, the processing trade in the Export Processing zones has developed steadily and fast, turning strong. However, with labour cost increasing, trade barrier more frequent and international competition more intensive, the problems have exposed, such as that the requirement for entrance isn't strict, that home purchasing is hard to increase, that the attraction for investment becomes weak, and that the management become disordered and so on.The problems on how to keep the developing tendency, expand high technology in the zones and ratios of high added value of processing trade, fully improve the its export competition have become urgent in realizing transformation and upgrade. This essay, guided by Marxist Theories on international trade, deeply researches into the present popular theories of processing trade and export processing, focuses on transformation and upgrade of processing trade, analyzes its history and characteristics with theories and examples, discusses its possibility and necessity of its transformation and upgrade, refers to other researchers'findings and the successful experience in transforming and upgrading Taiwan's and Kunshan's EPZ, and puts forward suggestions on the aspect. |
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