The Competition Capability Of The Trade In Financial Service And The Analysis Of The Factors Of China

The financial service industry is one of the cores of modern economy. A right financial service system means much both to the whole development of our national economy and a part of service department. According to the promises entering into WTO, we should open the national service market gradually, and we have already opened the whole financial service market by far, which provides a good and convenience condition for the foreign financial corporations, and brings furious competition between the national and foreign corporations. Thus, as a developing country , whether China has the competition capability in the global financial service trade or not has becoming an important question.This paper reviews the theories of enhancing the financial service competition capability, analyses the development situation of national finance , makes use of four indexes, such as TC,RCA,and TC to explain the competition capability of our national financial service trade in the world. Finally, the paper gives some advices according to the result of the demonstration matching to the six aspects of the diamond model.The paper demonstrates that the trade in financial service of China is in inferior position in the world .And it brings forward advices to enhance the capability from five aspects, there are factor condition, demand condition, the relevant& support industry, corporation strategy and the govemment.Concretely, if China wants to rise the station in the global financial service competition, it should use its advantage of labour force, changing it into human resources, collect the capital in and out of the nation, increase the domestic demand, encourage the innovation, regular the money market's environment, set up a good cooperation system and strengthen the assistant function of the government.