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First, the processing trade to face new opportunities

First, economic globalization, the impact of processing trade in China, making China the world's major processing and manufacturing base. At present, the general manufacturing industry has become a global excess supply in general, seriously diminishing marginal returns mature technology industry, the international relative price differences between products from industrial and agricultural knowledge into products and industrial products between the developed economies have the advantage of the transformation and upgrading to virtual economy, service economy and the knowledge economy phase. China is not a hotbed of new technology, but acceptance in the international industrial transfer; not control the global manufacturing and operations center, but in the low-end manufacturing technologies and products supplier links. In this case, China's low production cost advantages, the clear advantage in the global position, "Made in China" has become China's international competitive advantage, is inevitable at this stage irreversible trend. Therefore, the adoption of a new form of processing trade to enhance our manufacturing capabilities, the world's largest multinational corporations worldwide production, sales, service and management of the complete system, is to accelerate our business, "learning by doing" process, accumulation of global experience in large-scale production of the most favorable shortcut.

Second, in the context of globalization, product segments within the process or processes characteristic of the global division of labor into the new system is taking shape. A trend, with the multinationals in the space of various production processes or the processes assigned to different areas of comparative advantage, to establish R & D, production and distribution system of the global system, so that the domestic division of labor into the international division of labor; Another trend is to bring full competition in the market industry concentration, maximum use of capital, technology, management and processing of space and scope of agglomeration externalities arising from scale. In such cases, multinational companies not only because the "cost drivers" and the procurement, manufacturing, distribution Huanjie assembly to China, and because the "market driven" and the technical, management and funds into China. Moreover, because the Chinese market more competitive, multinational corporations have to take the initiative to regional R & D, operations management headquarters, regional logistics center and gradually shifted to China. Shows that full competition in the domestic market, is to obtain foreign advanced technology, management and financial recourses. China's low production cost advantage and multinational production of integrated logistics services and integrated operational capability, it may form a global network for the multinational companies from purchasing, processing, storage and transportation through to distribution and after-sales service cooperation. From the development prospects of view, globalization not only brings the Chinese manufacturing capability into a competitive advantage of international opportunities, but also to create the comprehensive advantages of upgrading the processing trade opportunities to the development of processing trade to begin a new transformation.

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