Decomposition Analysis Of Sino-US Bilateral Service Trade From The Perspective Of Trade Value Added

The United States has repeatedly imposed trade sanctions on China on the grounds of bilateral imbalance in trade in goods,ignoring the fact that the United States is increasing its trade surplus in services with China.With the increasing share of service trade in bilateral trade,it is of great practical significance to measure the bilateral service trade deficit between China and the United States scientifically and analysis of the Value Added Composition of Bilateral Trade in Services,so as to reveal the real situation of bilateral trade in depth.Based on the perspective of trade added value,this paper uses data provided by WIOD database which is newly published and WWZ decomposition method to re-measure and decompose Sino-US bilateral service trade.Firstly,this paper reorganizes the literature related to the accounting methods of value added trade and Sino-US bilateral service trade.Based on the perspective of added value of trade,this paper uses input-output model and WWZ decomposition method to decompose Sino-US bilateral service trade from two aspects of overall and sub-industries.It is found that the value creation ability of China's service trade is weaker than that of the United States,and it relies heavily on foreign intermediaries.Secondly,this paper makes an analysis of bilateral service trade from three perspectives:the causes of bilateral imbalances,the degree of linkages with non-service sectors and the distribution of interests.Research concluded:the three reasons for the imbalance of bilateral trade in services may be the restrictions imposed by the United States on China's trade in services,the monopoly of some knowledge-intensive service trade in the United States and the lack of voice in China's capital-intensive service trade.China's service trade relies more heavily on non-service sectors,and its contribution,though increasing gradually,is still lower than that of the United States.The profitability of China's service trade is relatively weak compared with that of the United States.Capital-intensive service trade has become the main area of current bilateral service trade,while knowledge-intensive service trade is the key to China's gaining more benefits in bilateral service trade.The United States is more dominant in bilateral service trade and is in a favorable position in the distribution of benefits in bilateral service trade.However,China's influence on US service trade is gradually increasing.Finally,according to the differences of bilateral service trade and the current situation of China's service trade,some countermeasures and suggestions are put forward.China should pay attention to improving the innovative ability of service trade,adjusting and optimizing its industrial structure of service trade,promoting liberalization of regional service trade and giving full play to the driving role of trade in goods.