Research On The Development And Transformation Of China 's Processing Trade

The reform and opening up policy has brought China’s foreign trade to a new era. With the acceleration of the pace of opening up to the outside world and international industry transfer, processing trade becomes an effective form of China’s opening up to the outside world, which plays a significant role in expanding export, stimulating employment, adjusting the structure and promoting economic growth. Within thirty years of rapid development, the processing trade has grown to be one of the important parts of China’s foreign trade. However, it also results in several problems such as imbalance in import and export trade, trade friction and high degree of dependence on foreign trade. Therefore, the development of processing trade is directly related to the health of the economy of our country; as a result, we must pay high attention on the development and transformation.The paper is based on the theory of trade connotation and economic effects, from the perspective of institutional change since the reform and opening up of China’s processing trade development. As a conclusion, processing trade is a kind of system innovation to adapt to the development of China’s trade system, which is also an important factor to promote the development of foreign trade and the opening to the outside world. Specifically, on the basis of the system of processing trade in China’s emergence, development, transformation and upgrading, the paper divides the process into three stage—initial stage, feed processing rapid development, and the processing trade transformation and upgrading. Moreover, the writer deeply analyses different aspects of the contents of this system, development status, and development performance in each stage. On the basis, this paper focuses on of China’s processing trade transformation upgrading from two aspects-theory and empirical, and clearly analyses the role of these factors in processing trade transformation and upgrading. Finally, based on the historical analysis and empirical results, the paper concludes present stage of China’s processing trade transformation and upgrading direction is mainly reflected in the main structure of the transformation, the transformation of trade pattern, regional development transformation, the industrial chain, and the transformation of management system. At last, this presentation propounds several countermeasures and suggestions so as to promote the processing trade transformation: reasonable utilization of foreign capital, improvement of the innovation incentive system, enhancement the domestic procurement rate, development of export processing business, improvement the quality of labor input and trade policy etc.