What is processing trade? What is the relationship between processing trade and OEM? Processing trade mainly includes external processing and assembly, small and medium-sized compensation trade and imported processing trade. In nature, processing trade has more elements of "horizontal division of labor" and has both trade and industrial functions. Processing trade is an internationally accepted trade method. The "Four Little Dragons" in Asia, especially China's Taiwan, South Korea, and Singapore, originally became the export processing base of Western multinational companies with low labor costs. They widely adopted the OEM method for processing trade and achieved good results. Now they have entered the high-tech industry. field, becoming an important manufacturer and exporter of high-tech products in the world. In my country, processing trade has developed into a major form of international trade. It has accounted for more than half of my country's import and export volume, more than 70% of my country's foreign trade exports of mechanical and electrical products, and 90% of my country's foreign trade exports of electronic products. my country's processing trade widely adopts the OEM method.