Study On The Transformation Path Of Processing Trade In Guangdong Province

Guangdong’ economy depends on foreign trade, in which processing trade accounts for the lion’s share. Thus we focus on the transformation of processing trade in Guangdong under the background of transformation. Processing trade in China, especially in Guangdong is the result of undertaking international industrial transfer using relative advantage endowments resources to participate in international division of labor, and depending on government policies in particular tax incentives to gain foreign currency. Its core is the transfer of the globalization of labor resources, while the product of processing trade is the transfer medium. The essence of the processing trade is service trade, it is the result of the application of services trade in the second industry, and it is also a low level service trade. Only the technological advances can lead to a permanent increase in per capital output, technological progress is the driving force of economic growth. This paper introduces technical factors to the transformation of processing trade, improving the technical level of trade in services as the future direction, where the technology means both soft skills level of the labor force and hard skills level of new industry with modern information technology. On this basis, the paper takes Porter’s competition model into the processing trade industry, to analyze the condition of the internal and external factors, enhance the overall competitiveness of the economy to seek transformation directions of processing trade. Under the background of the current stage, the first task is to find a new growth point, to stabilize economic development; Secondly, promoting it to develop from the low level of service trade to modern service trade, based on the analysis of the results of the previous factors, this paper gives three specific evolution directions: high-end manufacturing exports, cross-border electricity supplier, modern logistics. Further, we pay attention to the open strategy of China, place the Guangdong economic development under “The Belt and Road Initiative” strategy and “FTA” policy environment. Final article gives some specific policies on processing trade of Guangdong for reference.