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1、Processingforoverseasorders"Threesuppliesandonecompensation"referstoprocessingwithsuppliedmaterials,processingwithsuppliedexamplesandassemblingwithsupplyparts,andcompensationtrade.TheyrepresentaformofforeigntradedevelopedafterChinalaunchedthereformandopening-uppolicy.Processingwith
2、suppliedmaterialsmeansthattheforeignbusinessmensupplythenecessaryrawmaterials,sparepartsorcomponentelementsandChineseenterprisesdotheprocessingorassemblyjobandgivethefinishedproductstotheforeignbusinessmen.Inordertoencouragethelocalitiesandenterprisestodevelopprocessingwithsupplied
3、materials,in1988theMinistryofForeignTradeandEconomicRelationsissuedthe"RegulationsonLooseningRestrictionsRegardingProcessingandAssemblywithSuppliedMaterialsandRelevantIssues."Moreover,aseriesofencouragingmeasureswerealsoadopted,whichgreatlyarousedtheenthusiasmofthelocalitiesandente
4、rprises.Compensationtrademeansthatforeignerssupplythetechnology,equipmentandserviceswhiletheChineseenterprisesrepaythemwithproductsorlaborserviceinthesameamountofvalue.InordertobringintofullplayChina'sadvantageinrichlaborresourcesandlowlaborcosttomakeupforitsshortageoffundsandinfer
5、iorityintechnology,thegovernmenthasadoptedanencouragingattitudetowardscompensationtrade."Threesupply'sandonecompensation"usheredinforChinaanewformoftrade,promotedtheproductionofexportcommodities,improvedthestructureofexportcommodities,expandedexport,increasedincomeinforeignexchange
6、,madeuseoflargeamountofforeigncapitalandimportedforthecountryinternationallyadvancedtechnologyandequipment.Asmostoftheenterprisesengagingin"Threesupply'sandonecompensation"arelabor-intensive,theyhavehelpedincreaseemploymentandimprovepeople'slivingstandard.From1978,whenChina'sfirste
7、nterpriseundertakingprocessingwithsuppliedmaterials--ZhuhaiXiangzhouWoolMill--wassetup,to1998,"Threesupply'sandonecompensation"enterpriseshaveexpandedfromgarmentprocessingtoawholerangeofindustriesthatprocessdifferentvarietiesofproducts,suchasplastic,electronics,chemical,machinery,m
8、etalware,toysandhandicraft
