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The Effect and Inspiration of Financial Crisis on Reforming and Promoting of China’s Processing Trade

Author: CuiZhiLin
Tutor: ZhaoXiaoChen
School: Tianjin University of Finance and Economics
Course: International Trade
Keywords: Processing trade Reforming and Promoting Financial crisis Effect and Inspiration
CLC: F752.68
Type: Master's thesis
Year: 2010
Downloads: 306
Quote: 0
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Abstract


Since the reform and opening up policy was introduced, China’s processing trade has been developing rapidly. The import and export value of processing trade accounts for half of the total volume of foreign trade in China and is the main source of China’s trade surplus, promoting the sustainable growth of China’s foreign trade and economic growth rapidly. But until now, OEM production mode still remain in China’s processing trade, consequently products of processing trade are lack of core technologies and independent brand. Facing the worldwide industrial transfer upgrading and competition from low labor cost countries, China’s processing trade is in a difficult situation. Furthermore, since the second half of 2008, global recession and external demand decline caused by the financial crisis brought a hard hit on China’s processing trade. In this context, based on the theory of dynamic comparative advantage, the theory of international division and the theory of MNCs, this article analyzes the current statements and problems of China’s processing trade. Through studying on a large amount of statistics and evaluation indexes of reforming and promoting of processing trade, this paper evaluates the effect of policies those were taken for reforming and upgrading of processing trade and recognizes the progress of reforming and upgrading of processing trade. From the aspects of product, industry, area and enterprise, this article emphatically analyzes the influences of financial crisis on China’s processing trade and on reforming and upgrading of processing trade, and probes the main reasons of the effect, and then concludes the inspiration for further promoting of processing trade. On this basis of analysis, some reasonable proposals were put forward for reforming and upgrading of processing trade, in order to provide new ideas and direction for further promoting of processing trade.

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CLC: > Economic > Trade and Economic > States foreign trade > China's foreign trade > Import and Export Trade Overview > Special trade
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