Analysis On International Competitiveness Of China’s Financial Service Trade

Financial service trade is one of the most important sectors in the service industry and is also the new development of financial services which is an age-old thesis in the world. Financial service trade not only impact on the redistribution of monopoly interest in the international financial market, but also plays a very important role in promoting the development of trade in service. So the financial service trade is increasingly getting the attention from governments. Since the1990s, the international market of the financial service trade has changed a lot. The performance of the virtual capital in economic activity has become more active. Besides, the electronic information technology and network technology has brought a variety of financial services innovation. Last but not least, options, futures and the financial derivatives have developed rapidly. As a result, the intensity of international competition in the field of financial services trade is becoming fiercer. Therefore, to know the actual level of international competitiveness of financial service trade in China, to analyze the opportunities and challenges from the international financial markets have a very important practical significance.According to the relevant requirements of the Financial Services Agreement, China gradually fulfills the specific commitments in the field of financial services trade after the accession to the WTO, and our financial services markets have become more open than before. China’s financial services export value rose from$27million in1997to$3.8billion in2011, and the proportion of financial services in the total export value also increased from0.1percent to2.08percent. However, compared with the United States, Europe, Japan and other developed countries, there is still existing a considerable disparity gap. Even if compared to the developing countries, India, China is also in a comparative disadvantage. Therefore, compare the competitiveness of China’s financial services trade with other countries and make some recommendations in order to enhance the competitiveness of China’s financial services has profound practical significance and is also the main idea of this paper.On the basis of the research of the foreign and domestic scholars, this paper makes a detailed analysis of the competitiveness of China’s financial services. This paper is divided into six parts. First, the article reviews the domestic and foreign academic literature on the international competitiveness of the financial services.Then in the second part, this paper defines the relevant concepts, including the scope of the international financial services, delivery ways of trade in financial services as well as the the relevant definitions of competitiveness. In the third part, the article discusses the development status of China’s financial services trade. Then the article compares it with other countries’competitiveness and point out the disequilibrium in the type structure and in the import and export. In addition, this paper tries to analyze the situation of Chinese-funded banks’overseas investment and the conditions of foreign banks in China. This paper also uses commercial presence mode of trade in financial services to reflect the degree of opening and compare the competitiveness between Chinese-funded banks’overseas investment and foreign banks in China. In the fourth part, this paper uses Trade Net Export Index, International Market Share Index, the Trade Special Coefficient and the Revealed Comparative Advantage Index to compare the international competitiveness of the financial service among China, the United States, Canada, Japan, and India. In the fifth part, based on Porter’s theory, this article analyzes the main factors that affect the international competitiveness of China’s financial services trade and makes suggestions that are conducive to the development of China’s financial services industry. Finally, Part VI is the conclusion and outlook.