China's Processing Trade Development Strategy, From The Point Of View Of Theoretical And Practical Experience

China processing trade has gained much development since the reform and opening policy has been taken in 1978. It has become the main trade pattern that greatly contributes to the development of the economy. But there are still some inignorable problems with the rapid development of itself, which would have great impact on foreign trade and economic development. Based on the above mentioned situation, this paper discusses the develop strategies both in theory and practice.Firstly, I explained what processing trade meant and discussed its intension and extension. Secondly, I used the theories of international cooperation, theories of inter-industry trade policy, and the dynamic analysis model of comparative advantage to illustrate the appearance, the development and the transformation of processing trade. Thirdly, I focused on our country, talking about how the processing trade developed and the main problems existing in it, to show the necessity of rectifying strategies in processing trade. Then I compared and analyzed the experience of processing trade in Japan, Korea, Singapore, Taiwan Province and Mexico to find out what we can learn from them. After that, I got some inspiration in theory and lodestar, that is, science and technology had became the "Engine of Economy " in nowadays, and we should take advantage of our new comparative advantages in human resources, develop technology- oriented industries, then we could establish our own competitive advantages, and develop them to be comparative advantages in new conditions. Finally, I put forward some measures on how to develop processing trade, based on government, industry and enterprises.