Different ways of International trade in services

Different ways of International trade in services

1.Transit delivery

Service provider provides services to consumers in the territory of another member party in the territory of a Member Party, for example, by means of telecommunications, postal services, computer networks, etc. in the territory of China, to foreign consumers abroad.

2.Overseas consumption

Service provider provides services to consumers from another member in the territory of a member party, such as a Chinese citizen enjoying short-term residence in another country and enjoying foreign medical services.

3.Commercial presence

Service provider in another member of the territory of the establishment of commercial institutions in the latter territory to provide services for consumers, such as foreign service enterprises in China set up a company to provide services for Chinese enterprises or individuals.

4.Movement of natural persons

Service provider to enter the territory of another member’s territory as a natural person to provide services, such as a foreign lawyer as a foreign law firm representative to the Chinese in China to provide services for consumers.

China’s trade in services is supported by traditional tourism and transportation industries, which are mainly resource-based and labor-intensive industries, while capital-intensive services such as aviation, communications, construction and technology, knowledge-intensive services such as export and import financial services, computer and information services contributed little to China’s trade in services, and China’s trade in services continued to grow in a traditionally backward way.

The comparative advantage of China’s traditional service sectors, such as the transport sector, is gradually diminishing. With the rapid development of trade in goods and increasing demand for transportation services, China’s transport sector, especially air transport, has a large gap with Europe and the United States in terms of quality and price compared to some large transport companies in Europe and the United States.

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