An Analysis of the Problems in China’s Foreign Service Trade

An Analysis of the Problems in China's Foreign Service Trade

Service industry, as the center of modern economic activities, its development has become the key to economic growth. Therefore, the level of development of trade in services not only reflects the stage of a China’s economic development, but also reflects the China’s economic strength and international competitiveness.Since China accessed to the WTO, the development of trade in services is rapid, but there have been many problems. The problems is as followings.

1.The trade structure is irrational

At present, China’s export-oriented trade in services is mainly concentrated in the tourism and transportation and other relatively traditional services, but knowledge-intensive emerging enterprises and other high-tech industries are less involved. The gradual shift of traditional service trade to knowledge-intensive trade in services is the fundamental measure to adapt to the environment of economic globalization.

2.The degree of openness to trade in services is not significant

To a certain extent, there are still many restrictions in China’s service trade. The market allocation of resources did not play its due role. Service market confusion and openness difference limit to the overall development of export-oriented trade in services. For example, the market access is too strict for banking and communications traditional trade in services although some industries are relatively open but not complete

3.The regulations of related services trade is not sound

Although in recent years, China’s service trade legislation has been greatly improved. Compared with the developed countries, there is still a big gap, China’s trade in services legislation is still not sound, areas (such as telecommunications, tourism, etc.) still exist many gaps in the enactment of the law. Some of the laws and regulations are more abstract and lack of operability. Relatively speaking, the lack of coordination affects the unity of our service legislation and transparency.

4.The management is relatively backward, the professional talent is scarce

Although China’s export-oriented trade in services in recent years earn more attention by the relevant departments, because of our work in this area started late and the domestic policy constraints, ultimately lead to the backward situation of the management. At the same time, as China’s service trade gradually shifted from the traditional to knowledge-intensive, so the corresponding professional talent is increasingly in need.

Generally, the development of economic globalization to China’s export-oriented trade in services have brought great development opportunities, and also put forward the new challenges. In the face of complex market situation and fierce market competition, we must adjust the focus of our service trade and gradually towards the development of our own business. We must find out the existing problems in the process of service trade development by following the principle of practical value of the strategy. Only adapting to the development of economic globalization will achieve better development of export-oriented trade in services in China.

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