Analysis Of The Competitive Advantages Of China's Service Industry

Since 1950s, the world economic structure has experienced the trend of "servicization", the service production value and employment account for over 50% of their total respectively, and some developed countries even reach 80%. Meanwhile, the rapid uprising of the global service industry also pushes forward the booming of the international trade in service. In 1995, with the effectiveness of General Agreement on Trade in Service (GATS), for the first time, WTO extended the multilateral framework of international trade from the commodity area into the service area, which would put on extensive influence on the development of both the service industry and trade in service of the world. Therefore, the focus the international market competition is gradually transferring from industry represented by manufacturing to the service industry.Under the current situation, developing countries including China will face more fierce competition with the developed countries in the arena of service, which signifies the coexistence of both challenges and opportunities. While at present, compared with the major global economies, the international competitive advantages of China's service industry are not strong enough, and its trade deficit is growing year by year, which can be rooted in the factors, such as scale of economy and capital input.Because the pure Ricardian "classical international trade" does not exist in the modern economy, so under the framework of the new intra-industry trade theory, this paper estimates the intra-industry trade of China's service industry which concentrates on differentiation, by grouping 3 resource-intensive service industries, and analyzes its development as well. Then, by building econometric regressional models, practical proposals are submitted towards the factors influencing the international competitive advantages of China's service industry..