China's Service Trade Competitiveness

Since the 1980s, as the emphasis of world economy have been leaning to service industry, trade in service is developing rapidly in the process of integration of world economy. Developing service trade and promoting its competitiveness has gradually become the focus of the governments and scholars of various countries. It is of great significance to study China's competitiveness of service transactions. Competitiveness of trade in services involves its comparative advantage and its competitive advantage. Both two analyze the source and the development of trade in services from their respective aspects. Besides, trade liberalization also has important influence on trade in services. This paper is devoted to analyze the international competitiveness of China's trade in service and its policy suggestions.This thesis firstly the current status of the study in trade service in China and overseas, the main content and the structure. In the second part, it mainly elaborates the basic concept of the trade in service, including the definition, classification of the trade in service. Then it applies separately the traditional comparative advantage theory and competitive advantage theory into the domain of the trade in service and combine the free trade trend as the basic theory of the studies on international competitiveness of trade in service. For the third part, full accurate data is used to analyze the present situation of the trade in service of our country from the holistic character and structure character, found the problem exist in the service trade of our country. In the fourth part, Trade Specialization Index, Revealed Comparative Advantage and Competitive Advantage are used to analyze the competitiveness of China's trade in service. Through the comparison of the coefficients about the international competitiveness, it can be seen the China's trade in service is generally at a disadvantageous position, particularly those new-type service industries, such as capital-intensive type and technology-intensive type in which the disadvantages are more obvious, while the traditional service industries are only at a minor comparative advantage. The fifth part serves to put forward the policy suggestions to improve the international competitiveness on trade in service of our country. On the one hand, we should take full advantage of the competitive advantage to promote the level and the structure of the service industry in our country; on the other hand, competitive advantage should be used from the element term, relate industry and government to find proper method to improve the international competitiveness of China's trade in service.