The Comparative Study About Competitiveness Of Service Trade In China, Japan And South Korea

The global economy development is moving towards in the direction of integration.Economic and trade exchanges between China, Japan and South Korea also becomes more and more frequent, as three countries are an important support of Asia’s major economies and Northeast Asia economic. In recent years, trade developed rapidly in China, Japan and South Korea, whether in goods or service trade, the scale of foreign trade are increasing year by year, showing great potential for development. The world economy and trade pattern has been shifted from manufacturing to services industry and also from goods trade to service trade. It is no doubt that trade in service has become the focus of development in the world.Compared with Japan and South Korea two neighboring countries, service trade in China is still facing many challenges and problems to be solved. Since 1990 s, China has accelerated the adjustment of the industrial structure and recognizes the importance of the service industry. Therefore, service trade in China has been developed rapidly and the scale of trade in service has been expanding vastly. But huge deficit in service trade is also gradually expanding, the structure of service trade is irrational and percentage of high value-added industries is low. Deficit in China’s service trade is serious and China is the largest deficit country in the world. The scale of trade in services in 2014 accounted for only 12.3% which is lower 10 percents than the global level. Structure of service trade remains to be optimized.The service trade is an important indicator which is used to measure level of economic development of a country and it is also an important part of construction in the China,Japan and South Korea free trade area. Therefore, the problems to be solved about China’s service trade to strengthen self construction in the tide of global economy impact,enhance competitiveness facing service trade of Japan and South Korea is important for China’s service trade development healthily, transform mode of economic growth and gain sustainable economic growth.First, this paper describes the theory of international competitiveness, including Adam Smith’s theory of absolute advantage, David Ricardo’s comparative advantage theory and Michael Porter’s national competitive advantage theory. It is the foundation for analysis the competitiveness from a theoretical point of view. Then list relevant data about service trade of China, Japan and South Korea in recent years. Data sources include guide network ofservice trade in China, the website of the Ministry of Commerce of China, China Statistical Yearbook, the United Nations service trade information network website. Through data analysis, it is concluded that the development of services trade about China, Japan and South Korea in recent years. Using import and export data from 2007 to 2013 about China,Japan and the South Korea, calculated the international market share, TC index and RCA index about three countries. Then this paper analyzes competitiveness in services trade about these three countries and obtained empirical analysis. Finally, it is concluded that China’s service trade should make some adjustments and put forward some advices based on current situation and problems about China’s service trade and experience in the development of services trade in Japan and South Korea.