Study On The Potential Of Service Trade Between China And South Asian Countries

Trade in services has become a bright spot for many countries to drive economic growth and foster new industries.With the development of global digitalization and service-oriented global trade,the vigorous development of trade in services demonstrates the great potential of China’s trade in services.Together,China and South Asian countries are a huge market with a population of 3 billion,the fastest growing region in the world and the largest emerging market in the world.Economic and trade cooperation between China and South Asian countries has great potential for development and space for expansion.Therefore,this study in the background of the topic and research significance,finishing service trade and service trade potential and other related concepts,using literature analysis and theoretical analysis from comparative advantage theory,competitive advantage theory,national traditional and modern trade theory,analysis of China and South Asian countries bilateral service trade potential level and implement the influencing factors.First,based on the availability of data,this study provides a statistical description of the service trade between China and South Asian countries in terms of total volume,industry structure and trade relations.In aggregate:China’s service trade shows expanding scale,high international status and gradual optimization of import and export structure.Although the overall scale of service trade in South Asian countries is small,it maintains a strong growth trend and achieves long-term trade surplus.At the industry level:China’s service trade import and export are mainly traditional service trade,while the export of knowledge-intensive modern service trade increases year by year;the import of service trade from South Asian countries is mainly traditional service and modern service export.From the perspective of the service trade relationship between China and South Asian countries: China’s service trade export highly complements the import of South Asian countries,indicating that China’s service trade has great potential with South Asian countries in terms of export,and this complementarity mainly comes from the traditional service trade.Secondly,the empirical analysis of this study is to use the stochastic frontier gravity model to analyze the influencing factors affecting the efficiency and potential of bilateral service trade between China and South Asian countries,and to calculate the available trade potential value in the future.The results show that the efficiency of service trade between China and South Asian countries,and the trade potential and the trade pattern with India as the main body remain unchanged.In the future available average service trade volume,Sri Lanka is the highest,indicating that the potential value of service trade between China and Sri Lanka has not been fully tapped.From the perspective of industry,India,Sri Lanka,Bangladesh and Pakistan have far more space in modern service trade than traditional service trade,indicating that these countries are the main development targets of China in South Asia in the knowledge-intensive modern service trade.Finally,this study proposes corresponding policy suggestions: focus on the development of modern service trade and strengthen the foundation of bilateral service trade;reduce trade barriers to facilitate the service trade of both sides;improve the structure of service trade and enhance the international competitive advantage of Chinese service trade;make full use of the favorable conditions created by the new development pattern of "double cycle" to realize the high-quality development of Chinese service trade.