China'S Trade Division Under The New International Situation

In the past, the contribution of the industrial chain division to China's economic development is indelible. The processing trade enterprises in the southeast coast of China rely on the advantages of cheap labor, through the import of intermediate products, processing and assembling exports, making China the world's most competitive "world processing plant" and the global manufacturing OEM service platform. "P"

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< p > however, due to a series of reasons such as RMB a href= "//www.sjfzxm.com/news/index_c.asp" > /a >, land cost rising, labor wages increasing, energy and raw material price rising, the cost competitive advantage of Chinese enterprises in the coastal areas has declined, bringing about a series of problems, such as the slowdown of GDP growth and the rise in domestic prices. After the financial crisis, the shortcomings of this OEM mode have been greatly enlarged, mainly in the following aspects: < /p >

< p > first, the emergence of "poverty growth", that is, a pattern appearing in economic growth: while the output and employment are increasing, the economic remuneration has been decreasing.

For example, the volume of international trade is increasing, and the domestic industry has always been at a low level. For example, the export price is dropping faster than the increase in export output. People's living and welfare have not been improved with the increase of GDP, but on the contrary, the environment has become increasingly vicious circle.

Poverty growth has been used for reference in the world. The growth of poverty in Latin American countries is less than /p.

< p > it has fallen into the bottom of the global a href= "//www.sjfzxm.com/news/index_c.asp" > value chain < /a >, and has been locked in the road of high competition and low income.

Therefore, this is worth learning from China.

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< p > Second, it is not conducive to the upgrading of domestic enterprises to enter the international value chain's < a href= "//www.sjfzxm.com/news/index_c.asp" < /a > at a low end.

This is mainly due to the technical blockade of OEM enterprises in the host countries (mostly developed countries), or the direct import of foreign advanced equipment by OEM enterprises, and the loss of independent innovation opportunities.

Admittedly, many scholars also show that the FDI diffusion model of multinational enterprises has the technology diffusion effect through empirical analysis, making the learning effect preferentially generated by the OEM enterprises. However, the learning effect is limited to process upgrading and product upgrading. Without functional upgrading and departmental upgrading, it is impossible to upgrade from OEM to ODM or OBM, only to stay on OEM production.

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< p > Third, the dependence on multinational enterprises increases the possibility of economic breakdown.

Our country has maintained a GDP digit growth rate for a long time. As a typical export driven economy, China's foreign trade dependence has been very high, in 2007 even more than 70%. Two.

After the financial crisis, the call for stimulating domestic demand began to rise, as the recovery of the world economy was slow and tortuous, and the rate of unemployment in the United States, the largest country in the world, remained high. The formation of domestic consumption habits (dependence on some Chinese products, especially many necessities of life) was difficult to change, and China's trade was in surplus for a long time, which contrasted sharply with the huge trade deficit of the United States, making Sino US trade frictions and trade protectionism intensified.

Antidumping cases in the past and the problem of RMB appreciation that have not been solved so far are the best proof.

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< p > Fourth, the foundry mode of coastal enterprises has increased the current situation of unfair income distribution, making the gap between the central and western regions further widened.

The eastern region participates in the international division of labor for processing trade, attracting a large number of migrant workers in the Midwest. Under the condition of full mobility of the elements, this type of international division of labor can achieve the equalization of income and factor prices through the absorption of labor and raw materials in the central and Western regions, thereby narrowing the regional disparity.

However, in the eastern coastal area of China, the growth income of the international subcontracting industry has been biased towards capital, exports and the government, which makes the regional gap further increase.

According to statistics, China's per capita income growth rate over the past years is lower than that of GDP, import and export of goods and the growth rate of national fiscal revenue.

This shows that most of the income from international trade flows to capital owners, namely, capital owners, pnational corporations, governments and certain monopoly sectors.

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< p > besides, many of the foundry modes of coastal enterprises are at the cost of sacrificing environment and wasting energy, which seriously violates the strategy of sustainable development.

Therefore, we can see that China's accession to the international trade division with the current processing trade mode hinders China's industrial upgrading and hinders China's sustainable development, which will make China "frog frog" effect and ultimately be limited to the trap of "poverty growth".

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