Competitive Advantage Theory On The International Competitiveness Of China Trade In Services

With the rapid development of the world economy, trade in services in the world trade grows steadily. This makes trade in services as the current main competition of the world economy. While China trade in services is less competitive, and also has long-term deficit in the state of trade in services. Therefore, to find out the factors that impact the competitiveness of China trade in services and to enhance the policy approaches to improving competitiveness of China trade in services which is benefit for China's economy is very important.By applying the Competitive Advantage Theory to the practice of China trade in services, this paper studies the affecting factors for the international competitiveness of China trade in services. Through principal component analysis and regression analysis, the principal component scores and the regression equation are constructed.The results show that:the most important factors of the competitiveness of China trade in services are the company factors, demand factors and the elements of production factors. Also this result means that China trade in services is at investment-oriented stage. As a result, we should take actions on these three main factors and some suggestions to develop China trade in services are brought out.