| In recent years, international trade services has become an important component of the department of international trade and services has become a dominant force in economic growth.Besides, international competitiveness of a country’s service sector has become an increasingly important indicator of a country’s overall competitiveness. China’s service industry has made some achievements in recent decades. Service trade’s import and export volume has ranked top 30 in the world, what’s more, the modern service industry in recent years also achieves some success. However, compared with other developed countries, the international competitiveness of China’s service sector is still weak. Chinese Premier KeQiang Li decares we must launch a new round of high-level opening up and accelerate the construction of new open economy system and win the initiative with an open initiative for development and international competition. Therefore, to study China’s service industry how to size the opportunity of the global economy and how to narrow the gap between domestic manufacturing and how to catch up with the pace of development in developed countries has become a urgent issue.Based on the history and characteristics of China’s service industry development, the analysis of the international competitiveness of China’s service industry focused on the import and export data under the Global Value Chains. Because of the existing research on the international competitiveness of China’s service industry use more single index evaluation method, and few scholars study the correlation between development of global value chains and service, therefore, this paper attempts to use principal components analysis considering the trade competitiveness index, revealed comparative advantage index, export contribution rate and market shares index to evaluate the overall international competitiveness of China’s service industry and service sectors internationally competitive level. On this basis, the paper also tries to compare international market share, trade competitiveness index, revealed comparative advantage index and export contribution rate between China’s service industry and Indian service industry to analyze the gap between service sector’s international competitiveness between China and India. What’s more, according to Porter’s "Diamond Model" and the Global Value Chain, the paper analyses the exogenous factor and endogenous factor which determines the international competitiveness of China’s service industry from theoretical and empirical analysis. Finally, based on all the analysis results, the paper proposed a number of recommendations on improving the international competitiveness of China’s service industry.Based on the study, the paper concluded that:(1) The international competitiveness of China’s service sector is in a relatively weak position and international competition in services is weaker than India, in addition to the international market share, other indicators are much lower than India. (2)The development of China’s service sector is uneven. The traditional service sector which dominates the service sector is less competitive internationally, besides, emerging service sectors have almost no international competitiveness, however, construction services and computers and other business services and information services have achieved international competitiveness in recent years gradually. (3) The international competitiveness of the service sector depends on the development of the manufacturing industry, the actual utilization of foreign direct investment, GDP, human capital, services and trade openness and the accession to the WTO. |
