Analysis Of International Competitiveness Of China’s Trade In Financial Services

Since the1980s, the rapid development of science and technology makes thescope of trade in services expands which from the traditional low value-added field tothe emerging high value-added fields gradually. The level of development of trade inservices is becoming an important index to measure a country’s internationalcompetitiveness. In many countries, trade in financial services which as an importantpart of trade in services has become a new impetus and it plays an important role inthe economic development of a country. In China, due to the development of thefinancial industry started late and bound by a long-term planned economy, the level ofdevelopment of the financial sector are still some gaps compared with traditionalservices. Due to the weak financial sector industrial base, the level of development oftrade in financial services is relatively low, there is still a big gap compared withdeveloped countries.This paper based on the theory of Michael Porter’s industry competitiveadvantage, using a combination of qualitative and quantitative analysis, theory andempirical analysis combining research methods, combined with the currentdevelopment of the financial services industry, the international competitiveness ofour financial services trade issues were studied. The study includes: theoretical andempirical analysis of financial services trade and international competitivenessevaluation of factors affecting trade in financial services in China. Through the aboveresearch results:(1) The total amount of import and export trade in financial servicesis rising year by year and the overall size is expanding, but the financial services tradeaccounts for a relatively small proportion of trade in services, accounting for theproportion of world trade in financial services is relatively low. Financial servicestrade exports much less than imports. The trade deficit is serious and the tredestructure is unbalanced.(2)2001-2012, the estimated value of the financial servicesbusiness of CA index is the smallest which at (-0.8,-0.4) in the volatile and estimatesthe value of RCA index is greater than0, and from2006onwards there is a slowincrease trend; the value of the index NRCA is stable, but less than0. In the international competitiveness of trade in financial services, China and India, Korea,Japan, the United Kingdom and the United States are still a big gap.(3) Our ownfinancial institutions is a key factor affecting the international competitiveness of thefinancial services business, the financial institution asset size, staff quality and levelof information on the export trade in financial services all have promoted, while thefinancial sector monopoly on financial inhibit the export trade in services;development environment in which the financial services sector is also very important,but rapid economic growth, excessive government intervention is not conducive to thedevelopment of trade in financial services.Based on the above research findings, this paper proposes eight measures toenhance the international competitiveness of trade in financial services, that is, toexpand the scale of capital financial institutions to improve their asset quality andprofitability; emphasis on cultivating high-quality financial professionals to improvefinancial quality of human capital industry; accelerate the development of informationtechnology, improve financial services information technology; accelerate theupgrading of consumption structure, expanding demand for financial services;coordinated development of various industries to support the development of thefinancial services industry; changing the business model of financial institutions,strengthen the inherent stability of the financial system; role of the government role inguiding the development of the financial services business rationalization; theopportunity to seize the financial crisis, and strive for greater international marketshare.