China's Processing Trade Industry Transformation And Upgrading

With the development of productive forces,scientific and technological progress,international trade,finance and investment liberalization, multinational corporations put process or production of different sections in different countries in order to pursuit profit maximization according to factor intensity in different countries.This new form of international division of labor makes processing trade in China embed into the global production system.The development of processing trade in China is the same track of reform and opening up. Processing trade has played an active role in the promotion of regional prosperity and the use of foreign capital,and has introduced advanced technology and scientific management .Moreover,the processing trade enhance our industry's competitiveness in the international arena ,promote the development of domestic supporting industries and speed up the process of China's industrial upgrading. However,China's processing trade still exist some problems, such as the low degree of industrial linkage, short industry chain ,low value-added products and unbalanced regional development. At present the majority of China's processing trade enterprises are labor-intensive or in labor-intensive sectors of capital and technology intensive industries participate in international division of labor , a number of neighboring countries with lower labor cost advantage pose a threat to China's processing trade development.Under this context, the decision of the perfecting the marking system, which made in the Third plenum of the 13'th Central Committee of the CPC, has put forward that China have to develop the processing trade by absorbing the high tech and more increment processing trade from multinational corporations in order to guide the processing trade to upgrade.It a clear direction for the further development of China's processing trade.The article deeply analyses how to achieve China's processing trade industrial transformation and upgrading through the combination methods of theory with practice and quantitative analysis with qualitative analysis. The article is divided into six chapters,the first chapter for the introduction, describes the background and significance of topics , the relevant concepts ,in the study of processing trade at home and abroad literature review as well as the framework of this article, research methods and research of innovative point and inadequate; Chapter II introduces the theoretical basis on the industrial transformation and upgrading of processing trade ,including the theory of comparative advantage, the technology gap theory, product life-cycle theory, and the national competitive advantage theory ; third chapter describes the active role of China's processing trade in the economy and the necessity of industrial transformation and upgrading; fourth chapter describes the processing trade of China's the development status as well as current problems ; fifth chapter describes the countermeasures how to realize China's processing trade industrial transformation and upgrading ; the last chapter is conclusion.