Analysis Of The Competitive Edge Of China And India In Services Trade

Ever since the 1980's, along with the acceleration of global industry reconstruction and the economic development throughout whole world, the service industry's position in the national economy has raised a lot. Globalization of the service industry leads to an improvement of international service business which makes it the fastest growing part in international business. From 1980 to 2010, the world service trade exports have raised from $360 billion to $7166.6 billion. It has increased 20 times in this short period. Obviously, the world service trade will get more and more attention. At present, with the rapid development of global trade, many countries and regions pay more attention to promote their economic development, especially the bilateral trade and the investment to weaken the negative effect of globalization. China and India both are the important developing countries, the economic developments are groom. But globalization tide is not only bringing the two countries opportunities, but also a huge challenge. They will face of injustice, inequality in the international economic and political order constraints. In order to open this kind of situation, both in the Asian countries need to face this challenge. Therefore, building on the true meaning of the free trade area between China and India, and enhance their international competitiveness is necessary, for seeking a fair and reasonable international economic and political status of the creative act.In such situation, this paper analyzes the service trade competitiveness between China and India.It consists of four parts. First, elaborated the current situation of the development of service trade in China and India, based on the experience of bilateral trade in services within the scope of import and export trade structure are analyzed, taking sides in world service trade's position and influence as a breakthrough point, the objective of the service trade is compared. Secondly, thoroughly on the bilateral service trade departments open degree to give instructions, which under the trade departments include, services, communications services, construction services, insurance services, financial services, computer and information services, proprietary rights use fee and license fee, consulting, advertising, publicity, film, video, and other business service. Again, in the face of the forthcoming implementation of trade liberalization under the premise, the trade liberalization implementation will change under service trade sectors relative to each other country compares advantage change trend, the main applications of comparative advantage index, TC index to illustrate both the free trade condition the respective departments, should be emphasized in which has the advantage, what departments should be given more attention to. Finally, focuses on the analysis of two countries in the implementation of the liberalization of trade in services on the road which will encounter obstacles, thorough analysis, and put forward corresponding breakthrough suggestion.Comparing to existing literature, innovations of this paper can be conclude as follows. Compared with previous models, may be more accurately support and the liberalization of trade in services is feasible the thesis may come to a better model performance thus gives out more convincing results.