Opening Up Of China’s Service Industry

Since the Decision on Accelerating the Development of the Tertiary Industry was adopted by the CPC Central Committee and the State Council in 1992,accelerating the development of the service sector and promoting the transformation and upgrading of the economic structure have always been an important orientation of the Chinese government’s social and economic development strategy.In the process of comprehensively deepening reform and opening up,China’s service sector opening up has entered a new stage of comprehensive and rapid opening up from pilot opening up.There is no doubt that the opening of service industry plays an important role in promoting the introduction of external factors of production,stimulating competition and improving efficiency in China’s service industry.However,China’s service industry still has some problems,such as weak soft power,lack of overall competitiveness and uneven technical development level.The entry of foreign capital and its products is bound to have different impacts on the domestic service industry,therefore,great attention should be paid to the security of the service industry.Opening up and protection have always been a difficult contradiction to solve.We should not only share the benefits brought by economic globalization,but also reasonably protect the important industries and markets of the country.Therefore,under the general trend of accelerating the opening up of China’s service industry,how to improve the efficiency of the service industry and maintain the security of the service industry? This has become the urgent need to pay attention to and solve the problem in the process of reform and opening up.In his speech at the celebration of the 40 th anniversary of the establishment of the Shenzhen Special Economic Zone,President Xi Jinping pointed out that "the more open the zone is,the more attention should be paid to security.We should balance the two major issues of development and security,and strengthen our competitiveness,supervision and risk prevention and control capacity." Based on the measurement of the level of openness in China’s service industry,this paper deeply studies the influence and transmission mechanism of service opening on efficiency and industrial security of service industry,and discusses how to coordinate efficiency and industrial security of service industry under the condition of service opening,and puts forward some pertinent suggestions.According to the research topic,this paper discusses the following questions:First,how to scientifically measure the opening level of China’s service industry? On the basis of referring to the existing literature,this paper adopts the implementation of pilot policies for innovative development of trade in services,registered capital of foreign-invested enterprises in the service industry and other relevant indicators,and uses the data of enterprises,industries and cities to comprehensively measure the level of opening up of China’s service industry.Second,will the opening of China’s service sector improve the efficiency of the service sector? In response to this problem,in Chapter 5,this paper examines the relationship between service openness and service efficiency in China using data at the firm,industry and city levels,and conducts a series of robustness tests and heterogeneity analyses.In terms of empirical methods,this paper comprehensively uses the DID model,multi-stage DID regression,PSM,instrumental variables,fixed effect model and other methods to solve the endogenity problems in empirical tests,and obtains relatively reliable research conclusions.Third,what is the transmission mechanism through which China’s opening of the service sector improves the efficiency of the service sector? This paper investigates this problem in chapter six.By constructing a mediating effect model,this paper demonstrates the transmission mechanism of the impact of service opening on the efficiency of service firms in China from three aspects: reducing the cost of enterprises,promoting the technological innovation of enterprises and enhancing the management ability of enterprises.Based on the perspective of heterogeneity,this paper further investigates the transmission mechanism of the impact of service liberalization on service efficiency in China from four dimensions,enterprise ownership,enterprise size,industry and region.Fourth,will China’s service opening affect the security of the service industry? In chapter seven,this paper makes an empirical test of this problem.Based on the data of prefecture-level and above cities from 2006 to 2016,this paper firstly uses the panel fixed effect model to empirically investigate the impact of China’s service liberalization on the security of service industry,then the dynamic fixed effect model is used to test the problem.Secondly,this paper use instrumental variables,variable re-measurement,adding urban time cross fixed effect and other methods to test the robustness of the research conclusions.Lastly,from the perspective of regional differences and the development level of service industry,this paper conducts an empirical test on the heterogeneity of the impact of China’s service opening on the security of service industry.Fifth,how to balance efficiency and industrial security in the process of expanding the opening of China’s service industry? Based on the research conclusion that service opening affects service efficiency and industrial security in China,this paper tries to construct a coordination model of service efficiency and industrial security under the condition of service opening by reference to relevant literatures,and proposes the opening strategies of service industries in different regions of the coordination model.On this basis,by measuring the relative competitiveness and relative scale of China’s service industry,some suggestions are put forward for the future opening-up strategy of China’s service industry.Based on the above main research issues,this paper use a variety of research methods to demonstrate from the following eight parts.Part Ⅰ: Introduction.This paper mainly elaborates the research background,research value and research significance of this paper,puts forward the main problems of the key argumentation,summarizes the content,ideas and methods of the research,and puts forward the innovation of this research and the existing deficiencies.Part Ⅱ: Literature review.This paper reviews literature from the aspects of basic concepts,service openness and service efficiency,service openness and industrial security,as well as the relationship among service openness,service efficiency and service industry security.Part Ⅲ: Theoretical research.Firstly,this paper discusses the transmission mechanism and realization process of service openness affecting service efficiency.Then we discusses the transmission mechanism and realization process of service opening affecting the security of service industry.Finally,this paper puts forward the research framework of service efficiency and industrial security under the condition of service opening.Part Ⅳ: The basic investigation of the opening of China’s service industry.This paper first reviews the different stages of China’s service industry opening up and development,we further elaborated the opening situation of China’s service industry based on the relevant indexes provided by the World Bank and the OECD.On this basis,this paper uses events or indicators such as the implementation of pilot policies for innovative development of trade in services,the restriction index of trade in services,and the registered capital of foreign-invested enterprises in the service industry to measure the level of openness of China’s service industry,and analyzes its changing trend,aiming to provide support for the empirical research in the following paper.Part Ⅴ: Empirical study on the impact of service opening on service efficiency in China.Firstly,this paper measures the efficiency of China’s service industry from different levels.Then,we use the data of enterprises,industries and cities to empirically test the relationship between service openness and service efficiency in China.Finally,the robustness test and heterogeneity analysis of the research conclusions are carried out.Part Ⅵ: The transmission mechanism of the impact of service opening on service efficiency.By constructing a mediating effect model,this part empirically tests the transmission mechanism of the impact of service industry opening on service efficiency from three approaches: reducing cost,enhancing technological innovation ability and management ability.At the same time,according to the differences in ownership,scale,industry and region,this paper analyzes the heterogeneity of the transmission mechanism of the impact of service liberalization on service efficiency in China.Part Ⅶ: The coordination of service efficiency and industrial security under the condition of service opening in China.First,the paper measures the security status of China’s service industry,and interprets the security status of China’s service industry in detail based on the measurement results.Then we empirically test the relationship between service openness and industrial security based on the data of prefecture-level and above cities in China.Second,the robustness test and heterogeneity analysis of the research conclusions are carried out.Third,from the perspective of service efficiency and industrial security,this paper tries to construct a coordination model of service efficiency and industrial security under the condition of service opening by referring to relevant studies,and proposes the opening strategies of service industry in different regions of the coordination model.Then,based on the measurement of the relative competitiveness and relative scale of China’s service industry and the principle of the coordination model between service efficiency and industry security,this paper puts forward some suggestions for the future opening-up strategy of China’s service industry.Part Ⅷ: Conclusion,suggestion and research prospect.We first reviews the conclusion of the full paper,and puts forward targeted suggestions,and finally puts forward the corresponding research prospects for the improvement space of this paper.Based on the argumentation and research content of this paper,the following main research conclusions are obtained:First,the opening up of China’s service industry has gone through four stages: the initial period of opening up(1978-1992),the rapid development period of opening up(1992-2001),the transition period of opening up(2001-2012)and the new pattern period of opening up(2012-present),realizing a major transition from closing to opening up.The STRI index released by the World Bank and the Organization for OECD shows that China has reduced access restrictions in most service sectors from 2014 to 2019,but there is still room for greater improvement in the level of openness.This paper measures the level of opening up of China’s service industry by using the exogenous policy indicator of innovative development pilot policy implementation of service trade,the performance indicator of registered capital of foreign-invested enterprises in the service industry and other relevant indicators.The measurement results show that the pilot construction of innovative development of trade in services in China is continuously deepened,with the pilot areas increasing from 15 in 2016 to28 in 2020,and the level of openness of the service industry represented by the liberalization of service market access is continuously improved.The registered capital of foreign-invested enterprises in the service industry shows that the opening level of the full sample service industry is gradually rising from 2006 to 2016,among which the opening level of the Internet,accommodation and catering,construction,wholesale and retail,telecommunications,transportation and other industries is obviously rising.Second,in the empirical test of the impact of service liberalization on service efficiency in China,this paper first uses labor productivity to measure the service efficiency at the enterprise,industry and city levels.The measurement results show that the service efficiency of enterprises,industries and cities in China has been improving gradually from 2010 to 2019.However,due to the differences among service enterprises,industries and service industries in different cities,the service efficiency changes are different.Secondly,based on data from different levels,this paper empirically tests the impact of service liberalization on service efficiency in China.The basic conclusions are as follows: First,at the enterprise level,service liberalization significantly improves the efficiency of service firms.In addition,service liberalization has a more obvious promoting effect on the efficiency of non-state-owned service enterprises,large and medium-sized service enterprises,service enterprises with high management efficiency,new and productive service enterprises,and service enterprises in eastern and central China.Second,at the industry level,the opening of service industry has a significant promoting effect on improving the efficiency of service industries such as transportation,telecommunications,Internet,wholesale and retail.In cities with good service industry development foundation,the opening of service industries,such as transportation,telecommunications,Internet,wholesale and retail,can significantly promote the improvement of efficiency of corresponding industries.In cities with relatively low level of service industry development,the opening of transportation,wholesale and retail industries is helpful to improve the industrial efficiency,but the opening of telecom and Internet industries is not obvious to improve the industrial efficiency.Third,at the city level,service opening improves the overall service efficiency of the city.However,service opening has a significant positive effect on improving the service efficiency of cities in the eastern and central regions,but has little effect on the service efficiency of cities in the western regions.In addition,the positive impact of service liberalization on service efficiency will weaken with the increase of the ratio of service value-added to GDP in cities.Third,this paper further empirically tests the mechanism by which service liberalization affects service efficiency in China,and concludes that service liberalization can help improve the efficiency of enterprises by reducing their costs,enhancing their technological innovation ability and management ability.In addition,based on different perspectives of firm ownership,size,industry and region,this paper finds that there is heterogeneity in the mechanism by which service liberalization affects the efficiency of service firms in China.Fourth,service part open and the safety of the service industry in China,this article first from the industry competitiveness,industry control,industry environment,industry and external dependency industry dependence of upstream and downstream of the five aspects,such as the safety index system of China’s service industry and service industry safety comprehensive evaluation model to measure has been made for the security services industry.Based on the scoring results of the first and second level industrial safety indicators,this paper finally calculates the overall industrial safety score of China’s service industry.In general,from 2007 to 2018,the security level of China’s service industry showed a changing track of first rise and then decline.Secondly,based on the above measurement data,this paper conducts an empirical test on the relationship between service opening and service industry security in China,and the results show that service opening has a significant U-shaped effect on service industry security.Finally,the conclusion of heterogeneity analysis is that the impact of service opening on the security of service industry in China will be different with different regions of cities and different development levels of service industry in cities.Fifth,under the condition of open service efficiency and service industry in China security coordination of relevant literature,this paper attempts to build the security services under the condition of open service efficiency and industry coordination model,and USES the WTO published 11 countries service industry data,measure the 11 that the relative competitiveness of service trade in China and relative size,according to the principle of the measurement results and coordination model open strategy of different service industry in China are put forward.First,construction,goods related services and other two industries are relatively competitive and have a comparative scale advantage.These two service industries should continue to improve the legal system and supporting policies in the process of carrying out high-level opening-up.Second,the maintenance and repair industry has a large relative scale advantage but a weak relative competitiveness.Therefore,it is necessary to vigorously promote the quality and upgrading of the industry in the service opening,especially to increase the scientific and technological content and human capital investment of the industry,so as to maintain the industry scale advantage on the basis of enhancing market competitiveness.Thirdly,transportation and other business services has a certain relative size advantage but relatively weak competitiveness,should be on the basis of both the industrial safety,moderately reduce regional market access restrictions,and restrictions on trade in services provide different way,broke industry present situation of market segmentation,meet market demand diversification and individuation,so as to improve the level of industry technology and the core competitiveness;Fourth,tourism,telecommunications,culture and entertainment,insurance and pension,finance and other five industries are relatively small in scale and relatively weak in competitiveness.However,due to the large differences in the development level of the above-mentioned service industries,targeted policies and measures should be implemented in the process of opening-up based on the characteristics of the industries.Fifth,the relative competitiveness of the industry using intellectual property is weak and the relative scale is small,so it is necessary to adopt a relatively prudent opening strategy in the process of expanding the industrial scale and improving the competitiveness.Based on the above research conclusions,this paper puts forward the following suggestions:First,service opening is an important driver for improving the efficiency of China’s service.It should be noted that in the process of accelerating the formation of a new pattern of comprehensive opening up,service opening has a heterogeneous impact on service efficiency of different types of service enterprises,different service industries and different cities.First,at the enterprise level,we can explore the combination of service opening with the reform of state-owned enterprises,the development of emerging service industries,and the development of western China,so as to promote the growth of extensive marginal efficiency.Second,at the industry level,good areas shall,in the service sector basis,actively promote the construction of digital two-way digital services and services,to further improve the knowledge of service industry and high-tech content,maintain and expand the advantage influence between the correlation industry,service industry drives the regional construction quality of the service industry.Weaker areas in the service industry development foundation,should attach great importance to high-quality talent to absorb and reserves,to promote traditional service industries to the transformation of new technologies,new model and new forms and develop at the same time,the reasonable planning of emerging service industry layout,technology and knowledge intensive service industry development and promote regional service industry overall level of ascension.Third,at the city level,the service can be open policy planning implementation and organic combination of the basic conditions of urban service industry development,encourage the eastern,central and western region service industry linkage development of the city,through the reasonable configuration of cross-regional knowledge,technical factors service the conduction driving effects of science and technology,gradually narrow the gap between the efficiency of services between different cities.Second,we should pay attention to the positive role of reducing costs,enhancing technological innovation ability and management ability in the process of service liberalization affecting service efficiency.First,governments at all levels should encourage and guide service enterprises to optimize resource allocation,strengthen resource intensive management,adhere to the combination of "open source" and "reduce expenditure",promote the transformation and upgrading of service enterprises by reducing cost and increasing efficiency,focus on cultivating high-quality application and management talents,and accelerate the construction of new enterprises oriented by digital services.Secondly,the technology spillover and management spillover effect generated by the absorption of foreign capital should be rationally utilized to activate the innovation and development of various service enterprises,effectively integrate domestic and foreign service resources,and enhance the key driving force for the development of the service industry.Encourage state-owned service enterprises to enhance their technological innovation ability through competition,and guide them to make breakthroughs in expanding profits and improving efficiency through optimizing resource allocation and enhancing management ability.Focusing on the service industry,we will focus on breaking through industries and areas of weakness,and encourage enterprises in emerging service industries and productive service industries to strive to move up the global value chain with the business goal of providing high-level professional services.Encourage service enterprises in the eastern region to further enhance their internationalization level and the ability to radiate experience,and transfer and introduce advanced service technologies and management models to the central and western regions.Third,we should attach great importance to the security of the service industry in the process of opening the service industry.First,expanding the opening up of the service sector and strengthening supervision must go hand in hand,firmly establish the awareness of safeguarding national security and industrial safety,and strengthen the ability of opening supervision as soon as possible.On the basis of improving the open development plan of the service industry,we should construct the different industrial safety evaluation system and industrial safety early warning mechanism according to its particularity.In particular,industrial safety monitoring programs should be formulated for key and sensitive service industries,and a risk prevention and control system concerning national security should be established and improved,as well as a protection mechanism for independent research and development of key core technologies,so as to lay a solid foundation for industrial security.Second,it is necessary to promote the scientific construction of cross-border service trade supervision system based on the opening strategy and development status of China’s service industry.We should reasonably select the area covered by the negative list for cross-border trade in services,formulate a negative list that conforms to the requirements of industrial development and industrial security,and give full consideration to strengthening the protection of new and new industries in China in the future.Third,more actively participate in the formulation of global standards for service industry,further enhance China’s international discourse power in the field of service trade,and then more accurately grasp the applicable legal principles for maintaining the safety of the service industry from the perspective of global economic and trade rules.Fourthly,the expansion of the field of service opening and the improvement of the level of service opening are a gradual and long-term process,which requires the joint efforts of the government,the service industry and enterprises to effectively enhance the ability to maintain the security of the service industry under the condition of service opening.This is an important guarantee for improving the quality and upgrading of China’s service sector.Fourth,it is necessary to promote the sustainable development of China’s service industry to adhere to the basic principle of expanding the opening up of the service industry and paying equal attention to maintaining industrial security.First,service is invisible,and different service industries have significant differences in their trade delivery modes.Therefore,it is necessary to balance the relationship between improving the efficiency of the service industry and strengthening the opening supervision under the condition of opening up.Low open has adverse effects on the industrial safety service,thus to further open the service,unswervingly build flexible open policy system and scientific management system,make full use of the opening of internal incentive innovation,spillover effects of foreign participation in the global competition,and integrated into the domestic and international dual cycle each other to promote the development of new pattern,in the maintenance of industrial safety at the same time improve the efficiency of services.Second,we should promote cooperation and competition in the service industry,and promote the autonomous and orderly flow and efficient allocation of service elements.We should pay more attention to the importance of enhancing industrial competitiveness and optimizing industrial living environment,and improve the competitiveness and efficiency of the service industry by creating a good open environment,so as to fundamentally safeguard the security of the service industry.Thirdly,different industrial guidance and policy support should be given to the service industries with different relative competitiveness and relative scale,to encourage the absorption of high-quality foreign capital and the rational utilization of spillover effect,and to adhere to the development strategy of scientific and technological innovation.On the basis of giving consideration to industrial security,it should appropriately reduce the restrictions on regional market access and different service trade delivery modes,and effectively promote the soft power and global influence of the service industry through opening up.Fourth,to further activate the service innovation and development of new kinetic energy,we should expand the demonstration effect of innovation in pilot free trade zones,pilot projects for innovative development of trade in services,demonstration cities for service outsourcing,comprehensive pilot zones for cross-border e-commerce,national cultural export base,and comprehensive pilot projects for expanding the opening up of the service sector in Beijing,on the basis of comprehensively enhancing the core competitiveness of the service sector,we should coordinate the three major issues of service openness,efficiency and security.Based on the above research content,the innovation of this paper is mainly reflected in the following aspects:First,from the perspective of topic selection,based on the research perspective that service opening urgently needs to balance efficiency and industrial security,this paper brings China’s service opening,service efficiency and industrial security into the same analytical framework,and tries to build a coordination model of service efficiency and industrial security under the condition of service opening.Based on the principle of coordination model,this paper proposes the basic strategy of opening up of different service industries in China,which is an innovative point in the research perspective of this paper.In addition,there have been studies on the safety of the service industry,mainly focusing on the connotation of the security of the service industry or the discussion of the security of a single service industry.On this basis,this paper chooses to explore the impact of service opening on the security of the service industry and its transmission channels from the perspective of service opening,aiming to provide some new ideas and suggestions on how to effectively maintain the security of the service industry in the process of improving the quality and upgrading of China’s service industry opening and development.Second,this paper draws on the relevant research,selects the two indexes of the main influencing factors of the service industry efficiency and industrial security,and tries to construct the coordination model of the service industry efficiency and industrial security under the condition of service opening.On this basis,according to the principle of coordination model and the results of quantitative measurement of the relative competitiveness and relative scale of different service industries in China,this paper describes the industrial efficiency and industrial security,and accordingly puts forward the basic strategy of service opening that gives consideration to both the efficiency and industrial security of service industries.To some extent,this has enriched the related research on the construction of policy system in this field.Thirdly,in terms of analytical methods,in order to accurately measure the level of openness of China’s service industry,this paper conducts a detailed review of the pilot policies on innovative development of trade in services implemented since 2016 as well as the specific opening measures of each pilot region,and measures the level of openness of China’s service industry with the help of this policy indicator.This paper also evaluates the effect of China’s service liberalization policy based on performance indicators such as the registered capital of foreign-invested enterprises in the service sector in prefecture-level and above cities and industries in China.In addition,this paper establishes China’s service industry safety index system,which systematically measures the service industry security situation of prefecture-level and above cities in China.On the whole,the effective measurement of the level of openness and industrial security of China’s service industry not only provides important support for the empirical study of this paper,but also reflects some new ideas in terms of analytical methods.In addition,in the empirical research on the impact of service opening on service efficiency in China and its mechanism,this paper uses DID,PSM-DID,instrumental variables and other methods to effectively solve the potential endogenicity problems in this topic research,and through validity test and robustness test to obtain reliable research conclusions.In the part of empirical research on the impact of service opening on the security of service industry in China,based on the regression of the panel fixing effect model,this paper uses the dynamic panel fixing effect model,instrumental variables and other methods to test the research conclusions,which improve the scientific nature and credibility of the research conclusions.