Analysis Of China's International Competitiveness Of Service Trade

One of the most important characteristics in the development of international economy is that the proportion of output and employment of economy service industry has been increasing over the last half century. In developed economy, it exceeds 60%. In some countries, it even accounts for 80%. In developing countries, it has also been increasing greatly. In the field of international trade, the growth of trade in service has passed the trade in goods and the proportion of trade in service has increased gradually. Since the Reform and Open Policy, with the quick development of economy, China's economy has taken the third place in the world and the per-capita GDP has achieved 3000$. With the quick development of trade in goods, total volume of imports and exports has increased from 20.6 billion $ in 1978 to 2563.3 billion $ in 2008, which shows the huge opportunity of trade in service in the development of trade in goods.Although China is a big trading country, but its trade in service is relatively small. The added value of tertiary industry in China accounts for 40% of GDP, which is lower than not only the developed countries but also the other developing countries. China's traditional service industry is still in the process of lower level and lower added value and it has low ability in expanding international market and coping with external competition. The emerging service industry such as finance, insurance and computer and information technology started relatively late and is still in the stage of learning foreign experience. International competitiveness decides the scale of service industry, therefore, China's international competitiveness in service industry has caused many researchers'concern, especially with the influence of international financial crisis, China's imports and exports in service industry decreased in 2009. In 2009, total volume of China's imports and exports was 286.2 billion $, which was 6% less than the same period of last year. Exports were 128.7 billion $, which declined 12.1%, imports were 157.5billion $, which declined 0.3%. The foreign trade deficit was 28.8 billion $.The paper is divided into five parts. Part one is an introduction. This part puts forward background and significance of this issue, research situation of domestic and international scholars, structure, research methods and innovation of the work. Part two is the theoretical basis of the research, which briefly introduces comparative advantage theory and discusses the feasibility by utilizing the this theory to analyze the competitiveness of China's trade service. Part three is to gives quantitative analysis to the competitiveness of China's trade service. In the chronological order, the competitiveness of China's trade service has been increasingly improved, but from the index system of evaluation, China's trade service doesn't have comparative advantage, with the further deepening of reform and opening, the situation has not been changed. As for the different professions, China's construction service trade has extremely strong comprehensive competitiveness because of its quick development, some business services have comparatively strong comprehensive competitiveness, the two industries which have mid-level comprehensive competitiveness are tourism service and computer service, the industries which have weaker comprehensive competitiveness are transportation service, communication service and government service, the industries which don't have comprehensive competitiveness are insurance service, financial services royalties and license fees. The fourth part is to analyze the reasons that put off competitiveness of China's service trade. This part utilizes competitiveness theory by Porter to analyze the different reasons effecting China's trade service competitiveness and find out the problems exist in the development of China's service trade, that is the development and the structure of China's service trade are irrational, the advanced and special elements are in low supply, effective demand is insufficient, transparency level is inadequate and the government function is not obvious. The fifth part is to give purposeful suggestion to develop service trade. The view of the paper is that China should make the improvement on expanding money input, increasing effective supply, enhancing harmonious effects and defining government responsibility to promote China's trade service competitiveness. The last part is a conclusion of the paper.