A Study Of The Government Functions During The Transformation And Upgrade Of Processing Trade

Since reform and opening up, processing trade, as the power engine of Guangdong’s foreign trade, has played an important role in its economic development and industrial upgrade. Under the background of speeding economic globalization, the processing trade is facing a bottleneck, and its transformation and upgrade are inevitable. Since Guangdong province has taken the lead for its import and export volume among all the provinces and metropolises in China, whether or not its processing trade successfully accomplishes transformation and upgrade, will not only be crucial for its leading position of processing trade in China, but also influence China’s upgrade of processing trade. During the course of processing trade upgrade, all levels of governmental departments in Guangdong province have well played an important role. However, at the same time, issues such as offside, malposition and absence exist in one way or another, which are perplexities for the transformation and upgrade, some are even barriers.This article reviews the process of the processing trade’s transformation in recent years, and summarizes how all levels of governmental departments play their role, and probes the existing questions and theirs causes, and suggests possible path choices to tackle those problems. The article focuses on the realization of the functioning of various governmental departments, and explores how their effectiveness can better balance administrative methods and market ones. Furthermore, this article, on the basis of clarifying governmental functions, also explores how governmental departments proactively push forward the adjustment of governmental functions to embrace the opportunities and meet the challenges thereafter.The study mainly advocates research methods such as historical document analysis, data comparison, empirical analysis, as well as combination of qualitative and quantitative analysis. By taking Guangdong province as a case with its prominent effects in transformation and upgrade in recent years, this article discusses government departments’ functions during the transformation and upgrade of processing trade and summarize the major measures and their effects. It also points out the constraints and causes, and advises feasible counter measures for further shift and improvement of government functions. Finally, through careful study, this article come to a conclusion as follows: since there are various drawbacks in the operation of current governmental functions during the transformation and upgrade of processing trade, it is inevitable for the government departments to proactively shift their functions, which is also assurance and key to the successful transformation and upgrade of processing trade. At the same time, the exploration in this field may offer insightful observations on how to push forward governmental reforms in the period of post 18 th national congress of CPC.