Internationalization Is Approaching &Nbsp; Shoe And Garment Processing Trade Needs Urgent Pformation And Upgrading.

With the development of China's reform and opening up and the internationalization of the economy, processing trade has promoted the re jump of the footwear manufacturing industry to a certain extent, and has successfully promoted the industrialization and urbanization process of the whole country, especially the southeast coastal areas.

But at present, China's processing

Admittedly, there are still many problems in the processing trade of shoes and garments in China, but it is too early to say that it is necessary to cancel the processing trade of shoes and garments.

It can be said that in the future, the major adjustment of the processing trade policy of shoes and clothing or even the abolition of processing trade is an inevitable trend of the pformation and upgrading of processing trade to the advanced stage.

Domestic experts and scholars have studied the pformation and upgrading of shoe and garment processing trade very well, but most of them are wishful thinking and idealistic consideration. They are mostly guided by the government's position, aiming at the overall pformation and upgrading of the domestic industry, and lack of the "folk prescription" for processing trade. Therefore, there is not much operational significance in the application level.

Moreover, the pformation and upgrading of processing trade must rely on the strength of the market. The proper guidance of the government will help speed up its process, but it must not go beyond the bounds. It must be gradual and avoid haste.

How to conduct pformation and upgrading of processing trade in shoes and clothing enterprises, experts give three solutions:

First, expand the "X" industry mode and restore the true state of processing trade.

When we interpret the processing trade, we often say that this is a way of utilizing the "two kinds of resources and two markets" at home and abroad. When developing the processing trade, the traditional mode emphasizes that "two ends are in the outside, and the big ones are coming out." this is a real paradox.

To make use of "two kinds of resources and two markets", it is necessary to realize the "X" industry mode, that is, imported parts are processed into domestic products through China's processing and manufacturing process.

The "V" industrial mode is the "two heads in and out of the country". That is to say, the imported products are processed into the finished products on the right side through China's processing and manufacturing process, and almost all products are exported, and there are few domestic sales.

We should pform the over extended processing trade "V" industry model to the "V+X" industrial mode, improve the matching ratio of domestic materials and increase the proportion of domestic processing trade.

The high-end products which are assembled by foreign core components can serve domestic consumers at a low price, and enable domestic large quantities of mature supporting components to serve foreign consumers, so as to rely on "two kinds of".

The second is to guide external OEM to internal foundry on the basis of private brand.

In the processing trade enterprises, the enterprises who are specialized in processing and assembling, the enterprises that rely on orders to survive, and the enterprises that create brands, are quite different from the requirements of the enterprise capability, the enterprise structure, the enterprise management and the enterprise team.

Many enterprises in China have become the world's leading companies by making pots, pans, toothpicks, lighters and so on. However, the quality and structure of these enterprises do not possess the confidence of the brand and the shaping of marketing channels, and lack of relevant experience and knowledge. If they are forced to upgrade from the upgrading to private brands, this leap is of great danger.

The pformation and upgrading experience of processing trade enterprises in Taiwan region proves this point.

Taiwan is also a regional economy based on foundry. In the face of pformation, there are three trends in processing trade enterprises in Taiwan: pformation, building up their own brands, half making brands, half acting foundry and continuing to do foundry.

The warning to us is that the government takes the lead to combine with the market to conduct meticulous screening, give priority to support and create brand for the few shoe and clothing enterprises meeting the requirements, and let most other shoe and garment processing enterprises pform from foreign enterprises to domestic ones.

Third, set up a tax free zone for the final products of processing trade.

Chinese consumers who live in the "world factory" sometimes pay higher prices than other countries to buy "made in China" products.

Chen Deming, Minister of Commerce, said at the twelfth China Development Summit Forum that China will take measures to promote competition, improve the logistics system, pform and innovate the retail mode, and lighten the burden on the retail enterprises, so as to solve the problem of selling some international brand luxury goods in China at a higher price than overseas, and explore ways to sell the products sold abroad to domestic products directly in the domestic market.

In the pilot cities and demonstration areas of the national pformation and upgrading of processing trade, the pilot area for comprehensive reform of international trade is selected to set up the duty free zone for the final products of national processing trade.

This area is similar to the Hainan Islands tax-free operation ideas, the products sold in the area are exported, and bonded policies are applied.

Chinese citizens are allowed to purchase a certain amount of goods in their own area each year on the basis of their ID cards, which belong to the final consumer products of international brands which are completed in China. The tax on the import links that are included in the bonded materials shall be exempted from them so as to substantially reduce the selling price of the final consumer products and make the domestic consumers "cheap".

Suzhou, Jiangsu, is one of the two pilot cities for processing trade pformation and upgrading in China. There are many international brands that are consumed in the region, which can serve as the first pilot cities.