Analysis on the International Competitiveness of China’s Trade in Services

Abstract

ABSTRACT This paper analyzes the international competitiveness of China‘s trade in services using the international market share (IMS) index, revealed comparative advantage (RCA) index and trade competitiveness (TC) index and compared with other countries. The results show that the overall international competitiveness of China’s trade in services is weak but has been rising in the past 20 years. International competitiveness varies across industries, with higher levels in construction and communications; most of the capital- and technology-intensive industries, such as finance, insurance, and Patents and royalties, have no competitive advantages; however, the international competitiveness of resource-intensive tourism has declined since 2010, changing from a competitive advantage to a competitive disadvantage. The paper also analyzes the reasons for the weak competitiveness of China‘s trade in services, finding many problems with policy, the industrial base, and talent in the development of the service trade, which affects its international competitiveness. Finally, based on our analysis, we make some policy recommendations for improving the international competitiveness of China‘s trade in services.