A Comparative Study On The Development And Competitiveness Of Service Trade Between China And Korea

With the development of economic globalization and the acceleration of international industrial restructuring,the service industry is playing an increasingly prominent role in the global economic development.In addition,the demand and growth of service trade are getting more and more attention.Countries in the world are scrambling to introduce relevant policies and measures to develop the service industry and service trade.China and South Korea are adjacent to each other,share similar cultures and have complementary economic structures,thus achieving rapid development rarely seen in the history of bilateral relations in the world in such fields as economy,politics and culture.In June 2015,China and South Korea signed the china-south Korea free trade agreement,and the two countries reached a higher level of liberalization in the field of service trade.In December 2017,south Korean President moon jae-in paid a visit to China and signed a memorandum of understanding to launch the second phase of china-south Korea free trade agreement(FTA)negotiations,which further expanded the cooperation space in the field of trade in services between the two countries.Therefore,it is of great significance and value to study the development process of china-south Korea service trade,the analysis of bilateral trade competitiveness and the future development prospect.First of all,this paper analyzes the development process of china-south Korea service trade based on the china-south Korea service trade data from 1998 to 2017 released by the bank of Korea,and divides it into three stages according to the trade growth rate.During the period of rapid development of service trade between China and South Korea from 1998 to 2008,the total volume of service trade increased from 2.71 billion us dollars in 1998 to 24.86 billion us dollars in 2008,with an average annual growth rate of 25.1%.During 2009-2014,the service trade between China and South Korea was consolidated and developed.In 2009,due to the global financial crisis caused by the "subprime crisis" in the United States,the total service trade between China and South Korea was reduced by 18.8%compared with 2008.However,in 2010,it rebounded rapidly with a growth rate as high as 26.8%.During 2015-2017,the growth rate of china-south Korea service trade dropped sharply.Under the background of China’s economy entering the new normal and South Korea’s economy entering the structural adjustment,the service trade of the two countries began to decline and the decline was getting larger and larger.In 2017,the growth rate was reduced by 13%,and the average annual growth rate during this period was-3%.Currently,tourism,transportation and manufacturing services account for the major sectors in china-rok service trade,accounting for more than 70%of the total.Secondly,this paper analyzes the service trade competitiveness of China and South Korea by using the trade integration degree,intra-industry trade index and trade competitiveness index,and finds that the service trade integration degree of China and South Korea is very high,and the two countries have formed a close trade relationship,but the inter-sector competition in the service trade is also very fierce.At present,China and South Korea has absolute competitive advantage of service trade in the Chinese department of manufacturing services,and insurance services and government services in the fierce competition,in transportation,tourism,intellectual property,communications service departments such as South Korea’s competitive advantage,China’s trade deficit is quite serious in these sectors,to enhance the competitiveness of the department of trade in China.Thirdly,by analyzing and investigating the service trade development process and bilateral trade competitiveness between China and South Korea,this paper puts forward the problems existing in the development process.For example,the service trade between China and South Korea has dropped sharply in recent years.Despite the rapid development of the service trade between China and South Korea,the scale of the trade in goods is still too small.In view of the above problems,this paper also puts forward relevant countermeasures and Suggestions.For example,the FTA between China and South Korea is used to effectively promote the development of service trade and push it back to the growth track,actively expand the proportion of service trade,and actively improve the competitiveness of China’s service trade and improve its openness.