The Competitiveness Analysis Of Financial Service Trade In China

With the development of global economy, trade of service has replace trade of commodity as the most important form of international trade in the world economy. While financial service trade, as the essential part of service trade, has received more and more attention for its significant support to other service as well as commodity trade. The service trade in China started comparatively later and the financial industry has been under control with high monopoly policy. The competitiveness of financial service trade in China is unoptimistic. And how to make China's financial service trade more competitive to face with the impact of total openness brought by entering WTO, is the main topic we would like to discuss here.I shall analyze the competitiveness of China's financial service trade with TC index and RCA index. Combined with the import and export situation of China's financial service trade from 1997 to 2005, the competitiveness situation and development will be analyzed quantitatively as well as qualitatively. To measure the competitiveness of a country or an industry, economists raised comparative advantage theory and competitive advantage theory. Further, the IMD and WEF developed an index system that could be valued more directly based on the former theory. I will take China's bank industry as an example to analyze the major influence factor of financial service trade, according to the competitiveness measurement theory. In accordance with the influence factors, the strategy of improving the competitiveness of financial service trade in China will be raised.In the finality, the problems requiring further studies are discussed.