The Current Situation And Influence Factor Analysis Of China And German Service Trade

Service trade, which has become active in international trade market since 1970s, is one of the fastest growing sectors in international trade nowadays. It has drawn great attention worldwide. In the past 30 years, China has been a large service trade nation in the world, but its competitiveness is poor. As China’s service trade is in the key period of development, it’s an important task in China’s economic growth to develop service trade and promote balanced development of foreign trade. Germany is a powerful service trade nation worthy of the name, which has kept good trading partnership with China. German development experience is worth learning for us. As the impact of American subprime mortgage crisis and European debt crisis, Germany’s export has suffered heavy losses. To restore economic growth, German government has strongly promoted trade with China, opening a greater degree of Chinese consumer market and expanding German export as well. Thus it’s a win-win choice for both China and Germany to conduct in-depth cooperation in service trade.Firstly, this paper generally introduces the background, significance and domestic and foreign research review. The second part analyzes the current situation of Chinese and German service trade, then draws a conclusion that Germany has a strong competitive advantage in high value-added modern service trade and the overall development level and international competitiveness of German service trade are stronger than China, but China shows strong development momentum and vast potential. The third part, using sample data from 1991-2014, empirically studies the main factors affecting the development of Chinese and German service trade, then finds that merchandise trade and employment in services (% of total employment) are main positive factors for both two countries, but Chinese human capital has less effect on promoting service trade export than Germany. The forth part generally analyze competitive advantage and development experience of German service trade. Finally, on the basis of the above analysis, the author has put forward some proposals to improve current situation and competitiveness of Chinese service trade, and the author propose practical strategies to promote service trade cooperation upgrading and expanding between China and Germany.