This briefing outlines research which looks at Chinese trade policy waiving import duties on foreign materials used for re-exporting. Processing firms choose either to source foreign parts and export on their own (import-and-assembly) or to process inputs directly provided by a foreign buyer at no cost (pure assembly).
Manova, K.; Yu ZhiHong. Processing vs. Ordinary Trade. (2012) 2 pp.
Processing vs. Ordinary Trade