Openness And Development: Trade In Education Services In China Under The Trend Of Trade Liberalization In Services

The commitment on opening education services market under GATS (General Agreement on Trade in Services) in the World Trade Organization has created extensive and far-reaching impact on education services in China. Facing the challenges of the internationalization of education, from the perspective of economic theory, I discuss the applicabilities of traditional comparative advantage theory, neo-institutional economics theory, competitive advantage of nations theory, sustainable competitive advantage theory and the theory of international factor movements in terms of international trade in education services. Moreover, I analyze China's current situation of import and export of education services through four modes of trading services (i.e. cross-border supply, consumption abroad, commercial presence, movement of natural persons). And some issues, for instance, China's education services show lack of international competitive edge and the unfavorable balance of trade is large, are addressed. As a result, some viewpoints are expressed: An old concept should be changed and new educational ideas should be set up; The roles and functions of government should be changed; The import of education should be utilized more fully and talents should be trained; Competition should be enhanced to promote education exports; The marketing concept should be pursued and a legal system concerning laws and regulations with regard to trade in education services should be perfected. In addition, the establishment of China-ASEAN Free Trade Area (ACFTA) promotes the trade and economic developments in the 10 member countries. Education services co-operation and exchange between them are facilitated. Therefore, China should seize the opportunity to strengthen dialogue and communication, enhance understanding, remove obstacles, strengthen publicity, give full play to its comparative advantages to Southeast Asian countries and further the development of trade in education services between China and those countries.