The effect of different trade modes on promoting China’s economic growth


At present, several industries such as economic trade among countries in the world are constantly interoperable and dependent on each other, and global production and collaboration have become an important feature of economic globalization. This globalized economic development model makes the responsibilities and obligations of developed and developing countries further clear, and the allocation of market resources is further optimized, which promotes the continuous prosperity and development of the global economic market.

China, as one of the largest developing countries, whose main advantages are cheap labor and huge market scale, has been playing the role of processor in the global economy. How to accelerate the reform of China’s market economy system and promote the transformation of trade mode from processing trade to general trade is an urgent issue for the government and the central government to consider at present.

  Overview of the development of processing trade and general trade in China

  (A) Overview of the development of processing trade

Since the reform and opening up, China’s market economy trade policy has shifted from import substitution to export orientation, and the total economic volume has grown rapidly, according to the statistical data of the relevant state departments, the total economic volume of China grew at an average rate of 10% during the decades from 1981 to 2008, and even in 2008 when the global and financial crisis broke out, the total foreign trade volume of China reached 25632.6 billion US dollars Even in 2008, when the global crisis broke out, China’s total foreign trade reached US$25632.6 billion. Compared with general trade, the development of processing trade in China started late and has gone through four development periods, and now China has become a large processing trade country with a total trade volume of USD 1,053,491 billion, which has an important position in the international arena. In terms of growth rate, the total annual growth rate of processing trade import and export reached 21%, while the growth rate of general trade import and export is only 11%, the growth rate of processing trade is greater than that of general trade. In addition, from the viewpoint of industrial composition, the industrial structure of China’s processing trade, represented by electromechanical products and high-tech products, accounts for more than 75% of the total amount of high-tech industries, the value-added products continue to increase, the technology content is gradually improved, while the proportion of pure labor-intensive products in processing trade is also gradually reduced, indicating that China’s foreign trade industrial institutions are being transformed from labor-intensive to technology innovation. (2) Development of general trade

  (2) Development of general trade

As a traditional trade form, the development of general trade is closely related to the development of China’s economic main body. The development of general trade as a traditional form of trade is closely related to the development of China’s economy. The key factor is that general trade products mainly rely on their own resources and technology level, and most of the products imported and exported are machinery and equipment, and there is no inevitable relationship between these products and general trade exports, which will not have the expected effect of sustained growth. In terms of industrial structure, China’s export share of industrial products has been growing, the general trade industry level has been improved to a certain extent, but there is still a small gap compared to processing trade, foreign trade types are still mainly resource-based products, indicating that the effect of industrial upgrading of China’s general trade is not obvious.

  The influence of different trade modes on China’s economic growth rate

  (I) Selection and testing of data

This section analyzes the variability of the impact of different trade modes on economic growth from the angle of economics. GDP1, GDP2 and GDP3 are selected to represent the proportion of the primary, secondary and tertiary industries in the total GDP value of the year respectively. in 1981 to 43.14% in 2008. And the proportion of secondary industry has been stable at about 45%, higher than the output value of primary industry and tertiary industry, indicating that the manufacturing industry has been in the leading position in China’s economic system.

  (II) The impact of processing trade on China’s economic growth

Through our regression analysis done before the GDP of processing trade and primary, secondary and tertiary industries, we found that all three types of industries have been benefited by the processing trade, and the secondary and tertiary industries promoted are obviously higher than the primary industries. The tertiary industry is a new industry that gradually emerged in China’s national economic industry, which can reflect the added value promoted by processing trade and general trade plays an important role in economic development in the future, so the analysis result of the tertiary industry is value added.

  (iii) The influence of general trade on the structure of economic growth

We selected general trade to do linear regression analysis with GDP of the three major industry types respectively, and came to the following conclusion: general trade has a more obvious role in promoting the development of the structure of the three major industries, but there are great differences among the three, and the promotion of the primary industry is significantly greater than that of the secondary and tertiary industries.

So far, through the horizontal comparison we have repeatedly and precisely analyzed that: ① processing trade has played a good development and promotion effect in promoting the three major industries in China; ② the ratio of secondary and tertiary industries dependent on processing trade is greater than that of general trade; ③ the effect of processing trade and general trade on the tertiary industry is great, but the effect on the primary and secondary industries is small.


In summary, this paper systematically introduced the effect of processing trade and general trade on China’s economic growth, pointing out that different forms of trade have a certain role in promoting the development of different industries in China, but each side has its own focus, and the proportion of the total foreign trade in China’s economy at this stage is also different.

Therefore, we need to comply with and make use of the comparative advantage of the current stage to carry out processing trade industry reasonably, and use the results of continuous economic growth to enhance the breadth and depth of China’s participation in the international division of labor, paving and assisting future economic development.