our processing trade have largely remained stuck in primary mode

Importantly, our processing trade have largely remained stuck in primary mode --- and processing (OEM).

 

Although the development of processing trade is the comparative advantage we participate in international division of labor and exchange of objective needs, but to further the interests of sharing industrial chain, we must accelerate the transformation and upgrading of processing trade, the introduction of technology, improve digestion, absorption, innovation, gradually shifted from OEM to ODM (on behalf of the design), until the OBM (own brand) changes.

Federation of International Manufacturing Centre, constantly looking for lower cost production areas, this trend is irreversible.

 

Now do not grasp the construction of independent brands, just as complacent about the immediate results, and ultimately in the international division of labor will be mercilessly abandoned. Right now, more and more foreign companies, especially the abundant funds, advanced technology and management level, and a large overseas sales network with large multinational companies to enter China, which speed up the upgrade foreign trade structure is also a boost power.

 

Of course, this upgrade not in one step. For example, it can speed up the processing trade in intermediate goods, import substitution, the product value chain to have more intermediate links in the transfer to China, to enhance the added value of products, increasing foreign exchange earnings, while expanding the upstream and downstream links related industries to further enhance processing trade on the role of economic growth.