Research On The Productive Service Trade's Compit Iveness About South Korea And China

Global economy is developing rapidly,the trading environment is complex and changeable.Recently research shows that producer services are at the top of the smile curve in the global value chain,it can create greater added value than the manufacturing sector,both developing and developed countries are putting importance on the role of producer services.Meanwhile,the portion of the producer service trade which is of high value-added and high-tech content in the total international trade is getting higher,the producer service trade begins to become the standard of a country's trade competitiveness and structureIn 2015,as the 25th anniversary of the establishment of diplomatic relations between China and South Korea,the two countries formally signed the China-Korea FTA.Since China and Korea are both the trade power in East Asia,they have the similarity during the economic development.However,as a traditional manufacture country,China develops service trade late and lack of experice,lagging behind the Korea.South Korea has been developing the service trade since 1960s,the proportion of trade has reached the level of developed countries in recent year.Compared with China's constant trade deficit,Korea has been service trade surplus during the ten years.Though the upgrade of Terminal High Altitude Area Defense incident,the relationship between China and South Korea is tense,South Korea's development experience is still worthy to learn for China,To analysis of the competitiveness of productive service trade between Korea and China,this paper uses three traditional service trade competitiveness indexes,namely,Market Share Index,Trade Competitive Power Index,Revealed Comparetative Advantage Index by searching the latest 2005-2015 service trade data of China and Korea.Through analysis,South Korea has a strong competitive advantage in the transport industry service and construction industry service,China's competitiveness is greater than South Korea in communications,computers and information services industry.In the international market,they both are in a relatively competitive weakness in the service area of financial and patent use rights and concession services,the insurance industry.In the end of the article,to improve the trade competitive advantage of China,combining with the Competitive Advantage of Michael Porter,servral development suggestion will be given.