The Competitiveness Of China’s Financial Service Trade

With the development of economic of globalization, service trades, especially the financial service trade development become the measure of competitiveness upon a country’s trade. The financial service trade is crucial to improve a country’s financial industry and the development of trade in goods. Cross-border supply and Commercial presence are the main trade modes of financial service trade. Traditionally, the competiveness analysis of financial service trade is based on the statistical method of BOP(Balance of Payment). But with the development of multinational companies and enterprise mergers, the mode of financial service trade develops rapidly, which is becoming one of an important pattern of trade in financial service trade. So it is necessary to take statistical methods of BOP&FATS to analyze the competiveness of financial service trade.Based on the above background, this paper takes a quantitative and qualitative analysis methods. Firstly, the definition and characteristic of BOP&FATS are introduced, which shows that the statistical method of FATS can better explain the function and significance of FDI in our financial organizations. So it is necessary to make competitiveness analysis of financial service trade under BOP&FATS methods. Secondly, through the analysis of situation of financial services trade under statistical methods of BOP&FATS, it shows that our cross-border and commercial presence mode of financial services trade have developed rapidly and appeared an increasing trend. Besides, the statistic data of developed, East Asian and BRIC economies are selected to make international comparable analyses. Under the BOP method, the data between2001and2010are chosen to compare the index of MS, TC and RCA of several countries. Through the comparison, it shows that the competitiveness index of our financial service trade are very weak, which are far behind the East Asian and the other BRIC counties. Under the FATS method, macro and micro index between2005and2010of banks are selected to reflect the international competiveness. And under the FATS method, the total assets, non-performing loan ratio of Chinese banks are better than East Asian and the BRIC countries, but are worse than many developed countries. Furthermore, based on Porter’diamond model analysis, the paper analyzes the different influencing factors of competitiveness of financial service trade under both statistical methods. Finally, four suggestions are supplied to improve competitiveness of the financial service trade of our country. They are followings: accelerating the pace of internationalization of the Mainland’s financial institutions, strengthening the innovation of Chinese bank institutions, accumulations of advanced factors of production and improving the supports from government.