In 1994, General Agreement on Tariff and Trade (GATT) Uruguay Round negotiation has passed through General Agreement on Trade in Service (GATS), which symbolizes the world economy has entered into a new historical period-service economy. Service trade shows its more and more important role in countries economic development, becomes an important standard to measure a country's international competitiveness, and its competitive strength declares publicly a country's development prospects for foreign trade in the future.Just under this background, this paper utilizes the theory of industrial international competitiveness in service trade area, does research on the problem of international competitiveness of service trade in our country. First, this article reviews the theory of international service trade and the industrial international competitiveness. In the theory of international service trade there is a lot of argument about the likelihood of application of comparative advantages while the theory of international industry competitiveness would focus more on the sustainable development of the industry in the country. Secondly, by illustrating the current developing situation of service trade in China, the author uses Mr. Porter's "State Diamond" model to analyze the existing key factors which could significantly affect our international competitiveness of service trade and dig out the potential competitive advantages in it. Furthermore, this paper sets up an index system basing on the service data of import and export, which is composed of five indices such as International Market Occupancy Factor, Export Contribution Ratio, Normalized Trade Balance Index, Revealed Comparative Advantage Index and Net Export Revealed Comparative Advantage Index, makes a close industrial and worldwide comparative analysis of our service trade competitiveness with eight sample economic zones.Finally, bases on the conclusion made by the certain analysis and practical evaluation, the author makes some useful suggestions on the efficient way to enhance our service trade competitiveness for Chinese government from the following aspects: try to develop the high-quality factors on the basis of reasonable resource utilization; pay more attention to the domestic demand, improve the people's consumption framework; actively explore international markets and develop multinational service trade operation; increase the coordination and support of the service trade relatedindustries; improve the mechanism of the enterprises in our service trade and encourage service-type companies to get renovation, grasp the good opportunities and improve the positive function of the government. |