Abstract: Based on the latest development of value-added trade, using the data of distinguishing trade types, this paper studies and depicts the changing characteristics of foreign trade costs of China's manufacturing industry under the dual export structure. The results show that if the differences of trade types are not considered, the foreign trade cost level of China's manufacturing industry will be overestimated and the low trade cost of low and medium technology categories will be ignored; Because the foreign trade cost of processing trade is lower than that of general trade and the division of labor and integration is biased towards the category of low and medium technology, processing trade not only constitutes the main driving force of China's manufacturing foreign trade facilitation, but also an important incentive for China's manufacturing trade facilitation to be biased towards the low and medium technology sector; Moreover, with the prominence of low and medium technology bias and foreign trade preference of processing trade, the trade cost facilitation maintained by processing trade will face the severe challenge of "main capture of value chain → enhancement of foreign trade preference → negative foreign trade cost → further enhancement of foreign trade preference → intensification of capture". Therefore, under the background of rising domestic factor costs, the foreign trade facilitation of China's manufacturing industry urgently needs more scientific and effective changes.

Key words: trade cost, value chain, improvement trade, medium and low technology bias