The Processing Trade has improved the development of the economy of China greatly. Dongguan is an epitome of the development of Processing Trade in China in spite of the great shock from the international finance crisis. In recent years，Dongguan seized the opportunities，and has gained rather satisfactory achievements by carrying out the transformation and upgrading of processing trade positively. However there are still serious problems，such as the lack of core technology and self-owned brands，along with the insufficiency support of fund，information and talents. This article analyses the development history of the processing trade of Dongguan，explores the dilemma of its transformation and upgrading of the Processing Trade of Dongguan. This paper points out that the way-out to solve the dilemma is to open up emerging markets and to carry out the going out strategy，so as to provide the useful reference for the transformation and upgrading of the processing trade of China.