Research On China Business Services Industry Security Under The Background Of Economic Globalization

Over more than three decades of the reform and opening, a situation of overall opening-up has gradually formed in China, which presents both great development opportunities and severe industrial security risks. As an important part of the third industry, business service industry is the barometer of the comprehensive national strength and people’s living standard and the mirror of the mature degree of the market economy. With wider openness to the outside world and constant increase of foreign direct investment, China’s business services is experiencing greater external impact and influence from economic globalization. In order to draw on advantages and avoid disadvantages in the fierce international competition, China’s business services should speed up the industrial development, improve the international competitive power, strengthen the domestic control power and optimize the external dependence, so as to maintain industrial security in business service sector.This paper, based on the key study of circulation industry and industrial safety theory, combines the related theories of industry economics, development economics, international economics, international trade and institutional economics to analyze both the theoretical and empirical aspects of China’s business services industry security according to its characteristics, which embodies in following aspects:First, this paper systematically summarizes the theories and literatures about circulation industry, industry security and business services industry security. It also expounds the development course of economic globalization and China’s business service sector in terms of its policies, forms, foreign capital and globalization.Second, by analyzing the present situation of China’s business services industry security under the background of economic globalization, this paper finds that current business service industry in China has demonstrated several features, such as uneven regional development, predicament of format development, reinforcement of foreign investment control, lower level of international competiveness and etc.Third, this paper, under the background of economic globalization, explores the influencing mechanism on industrial security of China’s business service sector from both internal and external aspects. It points out that the industrial security development of China’s business service industry is suffering from a rather complex situation in the ever-increasingly open market. The internal influencing mechanism mainly includes the industrial development power and competitive environment. The external influencing mechanism includes foreign direct investment, foreign products and technology and global environment.Fourth, according to both the internal and external influencing mechanism on the industrial security of China’s business service sector under the economic globalization background, the paper presents empirical analysis based on industrial development power, industrial competitiveness, industrial control power, and industrial foreign demand elasticity. The study based on industrial development power indicates that the increase of labor productivity is higher in China’s business service sector than industrial sector, which is obviously inconsistent with the prerequisite of Baumol-Fawkes hypothesis. In other words, the test confirms that no Baumol cost disease exists in China’s business service sector. The study based on industrial competitive industry shows that the competitiveness of China’s business service industry remains at a lower lever. Since the wider openness of market often leads to greater impact from foreign investment in business service industry, the developed coastal cities are facing lower level of competiveness in business service industry. The study based on industrial control power concludes that current FDI, to a certain extent, can be a threat to the industrial security of China’s business service sector. However, the effects vary from different regions and different perspectives, which are related to factors like geographic location, level of economic development, level of openness of each region. The study based on industrial foreign demand elasticity of China’s business services industry security indicates that, generally speaking, the market demand of China’s business services is lack of flexibility and the industrial development is not safe, while foreign demand elasticity varies from different areas and different types.Fifth, to further measure China’s business services industry security, the paper constructs an index system and estimates China’s business services industry security situation from the industrial development power, industrial competitiveness, industrial control power and the level of industrial dependence on foreign countries. The results show that China’s business services industry security is at the low level of "basic safety". It also applies the BP neural network and genetic algorithm to test the validity of the model. The results reveal that the chosen safety indicators, safe interval, index weights are relatively reasonable, which indicates that the warning model is accurate.Finally, the paper takes the form of international comparison to analyze the protection background, protection subject and protection means of the business services industry security among developed countries, developing countries, newly industrialized countries and regions respectively. It reveals that the development trend of industrial security modes in business services diversify along with ever-changing global economic situation. Then it puts forward the policy suggestions on maintaining China’s business services industry security, which include the promoting the industrial development power, enhancing the international competitiveness, strengthening the control power of domestic investment, optimizing the external dependence and coordinating the regional development of China’s business service industry.