China And India Trade In Services International Competitiveness Comparative Study

As the world economic restructuring and the economic globalization is movingforward, the service industry is becoming the most important standard to measure acountry’s modernization and civilization level. The development of the service industryand the service trade is also a key standard to measure a country’s trade competitivenessand national competitiveness. After the international financial crisis, the rapid growth ofthe service trade is becoming the most impressive mark of the world economy.Meanwhile, the development’s model of both the emerging economies represented byBRICS and the developing countries has drawn the attention from all walks of life.During this time, BRICS, especially India，has made an great effort to develop theservice trade to increase its export competitiveness and keep the sustained economicgrowth. India and China, the biggest developing countries in the world, shared thesimilar economic foundation in the initial stage, and sought to spring up and to developunder the background of the economic globalization. Since implementing reform andopening up, China has achieved a lot in manufacturing sector, becoming World Factory,but the development of its service sector is relatively delayed. India, in contrast, focusedon its service industry. Although in numerical terms, its service trade cannot catch upwith that in China, India is becoming the world’s fastest growing country in the exportof services, according to the data from WTO. At the same time, because of its cheaplabor and taking advantage of every opportunity, India has built a brand name as “IndiaOffice” in the world.Under such a background, this article has done a comparative analysis on the globalcompetitiveness of service trade in China and India by using indexes such as theInternational Market Share(IMS), the indexes of Trade Specialization Coefficient(TC)and the indexes of Revealed comparative Advantage(RCA). Meanwhile, by using theoptimized “Diamond Model”, it has analyzed the influence factors on the globalcompetitiveness of service trade in China and India, found out that India had a relativecompetitive country in service trade; while, China had increase a lot in the total amountof service trade, but had been lack of the country’s global competitiveness and its tradestructure had been unreasonable, either. In2013, China had even experienced a tradedeficit reached118.5billion dollars. To sum up, China’s service trade has been facing a phase of “Growing Pains”.Although lots of scholars studied in the comparison of the global competitivenessof service trade in China and India, and got some valuable conclusions, this article’s aimis not to sink into the hot argue but to get a further comparison analysis on the globalcompetitiveness of service trade in China and India by learning and using previousresearch results. This article innovated in first using the optimized “Diamond Model”,which is built based on the basic national conditions in the developing country in Chinaand India, and specifically analyzing the influence to both China and India’s servicetrade global competitiveness in the aspects of factor conditions, demand conditions,relative industries and support industries, government and opportunities, enterprise’sstrategy structure and competition states. It also formulates practical and effectivestrategies and policies to improve our country’s global competitiveness of service tradeby teasing out the distances between China and India， as well as learning theexperiences in India, and combining our country’s realities.