As China's processing trade is the important part of its world trade￡-there has being argument，among academic research， for whether China should implement processing trade since 1980s. There has being research papers that discussing issues relevant to processing trade，like its contribution to economic growth and its transition and upgrade etc.，after foreign direct investment (FDI) enter the Chinese market in the form of processing trade in 2000. On the basis of the introduction to the production control mode in processing companies， the main obj ective of this paper is to provide analysis on the main problems exist in the theoretic res ea rch.