| Service trade liberalization has played an essential role in promoting economy development for both developed countries and developing countries with the General Agreement on Trade in Service (GATS) signing in Uruguay Round.As a developing country, China has not fully established its marketing and competitive economy as well as its service trade system. Hence service trade liberalization and opening of its service industry will bring severe challenge and risk to its service industry and to the national economy as well. On the other hand, China is fulfilling the promises that were subscribed when entered WTO, which inevitably makes it a necessity to further open its service industry.Hence, facing the service trade liberalization and the service industry with low level competitiveness in China and the developed countries seizing the market share, how we should follow the WTO and GATS rule to open the domestic service market and how we can utilize the positive effect fully of opening up to the outside; at the same time, how we should utilize the relevant clauses of the agreement to formulate the effective countermeasure for protecting our low-level service industry and providing essential conditions for emerging service industry field. All of these are important subjects are also the meaning of this selected title.The paper's theme serves between service trade liberalization and Chinese service trade opening up to the outside world. Centering on this theme, the paper can be divided into four chapters. Chapter one analyzes the development characteristics and trend of service trade and service trade liberalization as well. After the World war II especially from the 1970 period, accompanying the rapid development of service trade, a series of new characteristics and trend of service trade have appeared. First is the trend of speed-up development of service trade, Second is the broadening of service field and the violent development of knowledge intensive services and technology intensive services. Third is the service trade developed unbalanced among areas especially between developed and developing countries. Fourth is the trend of service trade liberalization. GATS sets up the basic rule of service trade liberalization, i.e. Most-favored-nation treatment, Transparency, Developing countries participating in more, Market access, National treatment, Gradually liberalization. These rules constitute the basic law frame for international service trade. Of course, the speed-up development of service trade liberalization is caused by various factors such as the rapid development of service trade and world economy, high tech reform, the forming of multilateral trade system and the promotion by the developed countries especially by U.S.A. China must consider the effect of service trade liberalization on our country when open the service market and push the liberal progress of service trade. Chapter two shows the "Double-edged sword" effect of service trade liberalization on the basis of analyzing the development situation of China's service industry. On the one hand, it will bring China unprecedented opportunity such as promoting the whole development of our service industry. On the other hand, it will also bring huge challenge to the development and management of our service industry, our national security and the whole economic development.Hence, in the international context of speed-up development of service trade liberalization, it is very meaningful to choose an opening mode for service industry, not only according with the basic principles of international service trade liberalization, but also suitable for Chinese national conditions. Chapter three analyzed the feasibility and restraint of Chinese service industry opening to the outside and compared among three modes of service industry opening to outside. I think China should choose the gradually opening mode. It is pointed out that the following rules must be adhered to. Active and Reliable, Non-discrimination and favoring, Internal and exte...
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