Foreign Company S’ Strategic Roadmap Coping With Processing Trade&Reforming Promotion Policies

Over30years has passed since Processing Trade was developed in China, it has beenbecoming one of the key factors for Chinese foreign trade, furthermore playing a more andmore important role in economic development for the country and even the region.However Processing Trade is closely linked to relevant policies and somehow inescapablyinfluenced by international and domestic policies as well as environment. It’s aninteresting and analytical topic about how to promote reform for domestic enterprises,especially for the Foreign Enterprises with processing trade business, whether they cansurvive or even step in further development if they cope with the policies related.The purpose of the policies is to ensure the smooth and healthy development ofProcessing Trade. Therefore the relevant enterprises should study the policies carefully tofind out the really reasonable, practical or operational solutions, avoiding leading tounexpected direction. Nowadays environment and conditions are also in change, it canonly work if all the enterprises cope with policies and frame rational countermeasuresaccordingly, especially strategic roadmap. It would be strongly suggested that the country,the region and the enterprises should support each other to bring a multiple-win to allparties related. That is the only way to succeed.This article tries to analyze Processing Trade theoretically, e.g. background, purpose,the necessity of reforming promotion, and so on. Studying policies and following “SmilingCurve”, the enterprises shall be prepared to proactively take necessary actions coping withthe policies, meanwhile develop with mid-and long-term strategy plan. Company S is agood example to prove that above countermeasures are the key to its success: proactive,smiling curve, mid-and long term strategy plan, etc. In the plan, Change Management ismostly the so-called Reform Promotion for Company S. As to kinds of foreign enterprises,good performance and great achievements are the bases to get consecutive technical andfinancial support from headquarter for their self development. The latest policies which may bring big influence to the further development ofProcessing Trade are about Shanghai Free Trade Area. Taking policies’ constitution andimplementation in big regard, it will not only be a big challenge but also opportunity forthe country, the region as well as the foreign enterprises.