View this page in: 简体中文版Jan 2012
How will processing trade in the Pearl River Delta cope with new challenges?
Processing trade has contributed greatly to China’s development for it being renowned as the "world’s factory floor" for over two decades. However, with continued globalisation and the reduction of China’s customs duties, the risks associated with processing trade is beginning to equalise its returns, if not overtaking it. The series of reform policies released by the Chinese Government and the active implementation and enforcements by local authorities since 2008, and in particular, the gradual closing down of toll manufacturing and the offering of the distinctive "same location Wholly Foreign Owned Enterprise (WFOE) conversion" regime to import processing manufacturers, have all led to the slowing down of processing trade.
In this issue's News Flash, we highlight the processing trade changes and outlook for the Pearl River Delta.
