Research On The Influence Of RMB Real Exchange Rate Fluctuation On China-US Service Trade

With the continuous development of international trade,the subject matter of trade from tangible to intangible,we pay more and more attention to the quality of goods and services,service trade is booming.In recent years,thanks to the chinese government attaches great importance to the development of trade in services,have given a lot of policy tilt to the service industry and related enterprises and achieved considerable results: the scale of China's service trade continues to expand,and its export share in domestic GDP and world service trade continues to increase,ranking second in the world,second only to the United States.However,due to the development of China's service industry still exists "short board",the development level of each industry is quite different,and it is easy to be affected by various factors.As a whole,it lacks international competitive advantage,and the trade deficit continues to expand.China's service trade deficit is derived from its important service trading partner,the United States,which benefits the most from global trade in services,and it is the world's largest trade in services and trade surplus,especially in emerging service trade industries such as finance,education and intellectual property.Therefore,China can learn from the advanced experience of the United States in the development of trade in services to improve its international competitiveness.This article starts with a descriptive analysis of the total and sub-industry data of China and the United States and Sino-US bilateral service trade.Secondly,based on the impact of service export costs,which constitutes the risk of service trade and the direct impact of China-U.S.Trade frictions—the exchange rate as the starting point for research,this paper makes correlation analysis and empirical analysis of the real RMB exchange rate with the total,difference,and structure of China-US service trade,which is concluded that: there is a long-term stable relationship between China-US service trade and the real GDP and real exchange rate of the two countries;The sum of the price elasticity of China's import and export services to the United States is less than 1,which does not meet the "Marshall-Lerner condition;Theprice elasticity of US import services is less than the price elasticity of its export services,which is closely related to the United States' strict control of China's exports in high-tech products and emerging services;In addition,the price elasticity is less than the income elasticity,indicating that in the short term,the service trade volume between China and the United States is more dependent on the real GDP of the two countries relative to the real exchange rate of RMB.In the long run,the real exchange rate of RMB will still have an impact on China-US in services.Based on this,policy Suggestions are put forward as follows: 1.Enhancing the flexibility of the exchange rate on the basis of ensuring the moderate stability of the RMB exchange rate in China;2.Increasing the level of national income and expanding effective domestic demand;3.Optimizing the structure of service trade and paying more attention to the development of emerging trade in service;4.promoting high-quality development of trade in services and raising the level of international competition;5.Building a multilateral economic and trade cooperation platform to ease trade frictions,thus promoting the healthy and steady development of China's service trade.