All along, the processing trade is an important means of trade for the development of import and export. It has a very important role in expanding exports, increasing employment, using foreign capital, and absorbing the transfer of overseas machinery manufacturing. To this end, China attaches great importance to the development of processing trade and has formulated a number of policies, regulations, and management systems that encourage the development of processing trade. However, so far, with the adjustment of economic and industrial structure, processing trade has brought negative influence on the sustainable development of China's economy. The relevant state departments have also successively introduced relevant policies for adjusting processing trade.
58 mechanical products listed in the ban on processing trade
On April 5, 2007, the Ministry of Commerce, the General Administration of Customs, and the State Environmental Protection Administration jointly issued an announcement and announced the "2007 Catalogue of Prohibited Commodities for Processing Trade" (hereinafter referred to as the "Catalogue") to limit processing technology and production Technological backwardness and high energy consumption, high pollution, and a large amount of processing trade that consume domestic resources. The "Catalogue" lists a total of 1,140 kinds of customs 10-digit tariff number products, of which 184 new ones have been implemented since April 26, 2007.
The announcement also stipulates that the processing trade business that has been approved by the competent commerce department before the April 26, 2007 purchase of newly added goods will be allowed to apply for processing trade registration with the customs according to regulations, and will be completed within the validity period of the approved contract; The managed networked monitoring companies are allowed to be completed by April 5, 2008.
In the banned list, it mainly involves diesel and other energy products, some chemical raw materials, agricultural and sideline products, rare earth minerals, and pulp. In terms of mechanical products, there are a total of 58 categories, of which two (lead-acid batteries) are prohibited from exporting from the processing trade, and 56 kinds of used mechanical and electrical products are banned from being imported through processing trade.
Among the 56 types that prohibit the import of used mechanical and electronic products by processing trade, there are 13 kinds of air conditioners, 4 kinds of non-electric heat (coal, oil, and natural gas) industrial furnaces, 29 types of refrigeration machinery and its parts, 1 copying equipment, and printing. There are 6 types of machinery and parts, and 3 kinds of cameras.
Among the above prohibited products, the export of lead-acid battery processing trade will affect US$200 million, and the impact of using imported old equipment as a processing trade export is limited.
Four characteristics of China's machinery industry processing trade
According to the statistics of the China Machinery Industry Federation, the import and export volume of China's machinery industry processing trade was 1.01097 billion US dollars in 2006, an increase of 28.26% year-on-year, accounting for 35.6% of the total import and export value of the machinery industry for the year 283.971 billion US dollars. Among them, the import value of US$33,203 million was up by 22.34% year-on-year, accounting for 23.44% of the machinery industry's import value of US$141,112 million; the export value was US$67,893 million, a year-on-year increase of 31.36%, accounting for 47.69% of the machinery industry's export value of US$142.359 billion.
Of the processing trade exports, the US$9.025 billion was exported from processing materials, an increase of 20.47%, and the feed processing exports were US$58.868 billion, an increase of 33.21%.
In recent years, the export of processing trade is the most common method of trade in the machinery industry. The export amount accounts for about 50% of the total export value of the machinery industry, which is more than the general trade export. According to customs statistics, export of processing trade accounted for 55.55% of machinery industry's exports in 2002, 55.31% in 2003, 54.86% in 2004, and 49.47% in 2005. Although it dropped to 47.69% in 2006, the amount was still more than General trade exports. In 2006, China's machinery industry exported 67.893 billion U.S. dollars worth of processing trade, which was 313 million U.S. dollars more than the average trade export volume of 67.58 billion U.S. dollars. According to data from 2006, China's machinery industry processing trade exports have the following characteristics: First, processing trade exports account for about 50% of the machinery industry exports, which has a decisive position; second, foreign-funded enterprises processing trade accounts for the machinery industry processing trade exports 84.41% of the export value reached US$57.31 billion, which is in the dominant position. Third, the export of processing trade in coastal provinces and cities accounted for 97.9% of the export of machinery industry processing trade, which is very concentrated. Fourth, the main trading partners of the processing industry of the machinery industry are the United States, the European Union, Japan, and Japan, China's Taiwan region, ASEAN, and South Korea are major import countries and regions for the processing of machinery products.
In 2006, China's machinery industry imported only 1.991 billion U.S. dollars from the U.S. processing trade, while exports reached 15.86 billion U.S. dollars, mainly after processing imported materials from Japan, Taiwan Province of China, South Korea, and Thailand, and then turned to the United States. Increased the trade deficit between China and the United States.
Four measures to adjust the structure of processing trade products
First of all, to improve the barriers to entry, to limit the level of processing technology, process backward products.
From the perspective of the product structure of the machinery industry's processing trade, despite the fact that there are a number of products with high technological content, most of the products still belong to labor-intensive and low-value-added products, and a considerable part belong to products with low processing technology and backward technology (such as some metals Structural parts, castings and forgings, chains, standard fasteners, telescopes, power tools, some wires and cables, low-voltage switches and plugs and sockets, water meters, gas meters, electricity meters, etc.) To this end, it is necessary to improve the barriers to entry and limit the processing technology products with low processing technology and backward technology.
Second, further ban the processing trade of highly polluting products.
At present, in some processing trade projects, we must pay attention to preventing the problem of “exporting resources, high energy consumption, and leaving pollutionâ€. In the machinery industry, special attention should be paid to the health of employees due to the pollution of dust and harmful substances in the production process. Such as the dust pollution in the production process of cast iron and steel castings, sand and dust pollution in the grinding tools, abrasive production process, pollution of harmful substances (such as lead, cadmium, mercury, etc.) in the battery and plating, paint, heat treatment production process. It is understood that pollution is currently serious in some processing trade enterprises (especially foreign-funded enterprises and small and medium-sized enterprises). It is necessary to introduce a corporate social responsibility assessment system, improve and improve environmental standards, and prevent foreign-funded enterprises from transferring pollution to China through processing trade.
Third, continuously upgrade and improve product structure and extend the processing trade industry chain.
At present, China's machinery industry processing trade should focus on upgrading and improving product structure, highlighting the following: First, the development of low-end products to high-end products. Such as from ordinary machine tools to CNC machine tools, low-middle-range CNC machine tools to the development of high-grade CNC machine tools; from the "three tables" (gas meter, water meter, power meter), "three mirrors" (telescope, magnifying glass, microscope) to the regulating valve , Transmitters, recorders, flowmeters and other upgrades, general instruments to digital, intelligent instrument development; from the following 220MVA transformers to medium and large capacity transformers upgrade, low-power internal combustion power generation units to upgrade to higher power internal combustion power generation units, low voltage Development of cables to medium and high voltage cables. The second is to gradually transfer from OEM production to independent brand production, such as standard fasteners, power tools, wires and cables.
The third is to gradually develop the unit and complete sets of equipment from a single machine.
It is not only a single piece of equipment, but also can undertake the processing and manufacturing of production lines and complete sets of equipment. The fourth is to extend the processing trade industry chain and undertake product design, equipment use training, after-sale maintenance services and maintenance spare parts supply.
Fourth, to promote the gradual shift of processing trade to the central and western regions.
The geographical distribution of processing trade in the machinery industry is excessively concentrated in coastal cities. Due to the shortage of land resources and rising labor costs in some coastal regions, the processing trade of some traditional industries gradually loses its competitive advantage, and conditions should be created to promote its transfer to the central and western regions or to the less developed regions in the country.
58 mechanical products listed in the ban on processing trade
On April 5, 2007, the Ministry of Commerce, the General Administration of Customs, and the State Environmental Protection Administration jointly issued an announcement and announced the "2007 Catalogue of Prohibited Commodities for Processing Trade" (hereinafter referred to as the "Catalogue") to limit processing technology and production Technological backwardness and high energy consumption, high pollution, and a large amount of processing trade that consume domestic resources. The "Catalogue" lists a total of 1,140 kinds of customs 10-digit tariff number products, of which 184 new ones have been implemented since April 26, 2007.
The announcement also stipulates that the processing trade business that has been approved by the competent commerce department before the April 26, 2007 purchase of newly added goods will be allowed to apply for processing trade registration with the customs according to regulations, and will be completed within the validity period of the approved contract; The managed networked monitoring companies are allowed to be completed by April 5, 2008.
In the banned list, it mainly involves diesel and other energy products, some chemical raw materials, agricultural and sideline products, rare earth minerals, and pulp. In terms of mechanical products, there are a total of 58 categories, of which two (lead-acid batteries) are prohibited from exporting from the processing trade, and 56 kinds of used mechanical and electrical products are banned from being imported through processing trade.
Among the 56 types that prohibit the import of used mechanical and electronic products by processing trade, there are 13 kinds of air conditioners, 4 kinds of non-electric heat (coal, oil, and natural gas) industrial furnaces, 29 types of refrigeration machinery and its parts, 1 copying equipment, and printing. There are 6 types of machinery and parts, and 3 kinds of cameras.
Among the above prohibited products, the export of lead-acid battery processing trade will affect US$200 million, and the impact of using imported old equipment as a processing trade export is limited.
Four characteristics of China's machinery industry processing trade
According to the statistics of the China Machinery Industry Federation, the import and export volume of China's machinery industry processing trade was 1.01097 billion US dollars in 2006, an increase of 28.26% year-on-year, accounting for 35.6% of the total import and export value of the machinery industry for the year 283.971 billion US dollars. Among them, the import value of US$33,203 million was up by 22.34% year-on-year, accounting for 23.44% of the machinery industry's import value of US$141,112 million; the export value was US$67,893 million, a year-on-year increase of 31.36%, accounting for 47.69% of the machinery industry's export value of US$142.359 billion.
Of the processing trade exports, the US$9.025 billion was exported from processing materials, an increase of 20.47%, and the feed processing exports were US$58.868 billion, an increase of 33.21%.
In recent years, the export of processing trade is the most common method of trade in the machinery industry. The export amount accounts for about 50% of the total export value of the machinery industry, which is more than the general trade export. According to customs statistics, export of processing trade accounted for 55.55% of machinery industry's exports in 2002, 55.31% in 2003, 54.86% in 2004, and 49.47% in 2005. Although it dropped to 47.69% in 2006, the amount was still more than General trade exports. In 2006, China's machinery industry exported 67.893 billion U.S. dollars worth of processing trade, which was 313 million U.S. dollars more than the average trade export volume of 67.58 billion U.S. dollars. According to data from 2006, China's machinery industry processing trade exports have the following characteristics: First, processing trade exports account for about 50% of the machinery industry exports, which has a decisive position; second, foreign-funded enterprises processing trade accounts for the machinery industry processing trade exports 84.41% of the export value reached US$57.31 billion, which is in the dominant position. Third, the export of processing trade in coastal provinces and cities accounted for 97.9% of the export of machinery industry processing trade, which is very concentrated. Fourth, the main trading partners of the processing industry of the machinery industry are the United States, the European Union, Japan, and Japan, China's Taiwan region, ASEAN, and South Korea are major import countries and regions for the processing of machinery products.
In 2006, China's machinery industry imported only 1.991 billion U.S. dollars from the U.S. processing trade, while exports reached 15.86 billion U.S. dollars, mainly after processing imported materials from Japan, Taiwan Province of China, South Korea, and Thailand, and then turned to the United States. Increased the trade deficit between China and the United States.
Four measures to adjust the structure of processing trade products
First of all, to improve the barriers to entry, to limit the level of processing technology, process backward products.
From the perspective of the product structure of the machinery industry's processing trade, despite the fact that there are a number of products with high technological content, most of the products still belong to labor-intensive and low-value-added products, and a considerable part belong to products with low processing technology and backward technology (such as some metals Structural parts, castings and forgings, chains, standard fasteners, telescopes, power tools, some wires and cables, low-voltage switches and plugs and sockets, water meters, gas meters, electricity meters, etc.) To this end, it is necessary to improve the barriers to entry and limit the processing technology products with low processing technology and backward technology.
Second, further ban the processing trade of highly polluting products.
At present, in some processing trade projects, we must pay attention to preventing the problem of “exporting resources, high energy consumption, and leaving pollutionâ€. In the machinery industry, special attention should be paid to the health of employees due to the pollution of dust and harmful substances in the production process. Such as the dust pollution in the production process of cast iron and steel castings, sand and dust pollution in the grinding tools, abrasive production process, pollution of harmful substances (such as lead, cadmium, mercury, etc.) in the battery and plating, paint, heat treatment production process. It is understood that pollution is currently serious in some processing trade enterprises (especially foreign-funded enterprises and small and medium-sized enterprises). It is necessary to introduce a corporate social responsibility assessment system, improve and improve environmental standards, and prevent foreign-funded enterprises from transferring pollution to China through processing trade.
Third, continuously upgrade and improve product structure and extend the processing trade industry chain.
At present, China's machinery industry processing trade should focus on upgrading and improving product structure, highlighting the following: First, the development of low-end products to high-end products. Such as from ordinary machine tools to CNC machine tools, low-middle-range CNC machine tools to the development of high-grade CNC machine tools; from the "three tables" (gas meter, water meter, power meter), "three mirrors" (telescope, magnifying glass, microscope) to the regulating valve , Transmitters, recorders, flowmeters and other upgrades, general instruments to digital, intelligent instrument development; from the following 220MVA transformers to medium and large capacity transformers upgrade, low-power internal combustion power generation units to upgrade to higher power internal combustion power generation units, low voltage Development of cables to medium and high voltage cables. The second is to gradually transfer from OEM production to independent brand production, such as standard fasteners, power tools, wires and cables.
The third is to gradually develop the unit and complete sets of equipment from a single machine.
It is not only a single piece of equipment, but also can undertake the processing and manufacturing of production lines and complete sets of equipment. The fourth is to extend the processing trade industry chain and undertake product design, equipment use training, after-sale maintenance services and maintenance spare parts supply.
Fourth, to promote the gradual shift of processing trade to the central and western regions.
The geographical distribution of processing trade in the machinery industry is excessively concentrated in coastal cities. Due to the shortage of land resources and rising labor costs in some coastal regions, the processing trade of some traditional industries gradually loses its competitive advantage, and conditions should be created to promote its transfer to the central and western regions or to the less developed regions in the country.
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