China's Service Trade Comparative Advantage And Competitive Advantage

Nowadays, the center gravity of transfer in international industry has truning from manufacturing to service industry. The function of service trade will be more and more important to each country. Firstly, by reviewing the theories of traditional international service trade, the paper deems competitive advantage is more important and points out the way how to build up the competitive advantage in service trade. Secondly, the author analyzes the data on comparative and competitive advantages in China, concluding that most of Chinese competitive advantage in service departments is faint, especially in finance, insurance, patent, consultation and information industries. Furthermore, by illustrating the examples of Shanghai and Heilongjiang province, the article shows that compared with other developed countries and cities, the level of service trade in Shanghai is very low and the range of service trade in Heilongjiang province is much more limited. Finally, aiming at the current developing situation of service trade in China and its problems, the author makes some useful suggestions on the efficient way to enhance competitive advantage of service trade in China, and emphasizes the government of China should grasp the good opportunity of international industry transferring and struggle for the development of service trade.