The Developmental Characteristics of China’s International Service Trade

The Developmental Characteristics of China's International Service Trade

Before the 1970s, international trade in services was not a striking area in world economic and trade relations. The multi-round negotiations organized by the General Agreement on Tariffs and Trade (GATT) have not yet taken into account the need to address this issue. Only after this, the development potential and importance of international trade in services began to pay attention to people. The term “international trade in services” refers to the development of international trade in services in recent decades.

There are three types of international trade in services that can be obtained if a recognized international trade in services is divided by the close degree of trade in goods and direct investment. One is the classical international trade in services related to international trade in goods, such as international transport, international maintenance and care, international financial services (mainly trade settlement services), wholesale and retail commodities. The second category is the international trade in services, such as stocks, bonds and other forms of securities investment income, profit and loss of operation and management, construction and engineering contracting, and international service trade, which are closely related to international direct investment. Credit and so on. The last category is an international trade in services that are relatively independent of trade in goods and direct investment, such as services provided by international tourism, services of the World Information Network, audio-visual products and intellectual property services. Since the 1970s, the development of classical service trade projects has been mainly manifested in the expansion of scale and the increase of quantity.

Due to the rapid development of international trade in services since the 1970s, the international service trade market has become increasingly competitive, and countries have strengthened their research on international service trade for their own benefit. Traditionally, international trade in services theory and empirical research have been relatively neglected in the areas of international economic and trade relations. However, since the international trade in services in 1986 became the new issue of the Uruguay Round, the development of international service trade and domestic service industry has become a hot topic in government, business and academia. In developed countries, government funding grants academics and think tanks to conduct a special study of this area, analyzing the economic implications of international trade in services, the realities of development, the strategies for the world market, and possible policy actions. In developing countries, on the one hand, they remain cautious about the protectionist approach to markets such as liberalization of finance, insurance, transport, audiovisual services and commercial sales, and on the other hand, attention has been paid to research in this area. Some countries have even begun to organize their own research and evaluation institutions on the state of the service industry and the situation of foreign services in an attempt to truly know ourselves in this new international economic and trade field in order to enter and open international trade in services the practice of the market in a proactive position.

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