Current Situation and Countermeasures of China's Trade in Services Development

Abstract: Trade in services is gradually becoming the focus of global economic competition. After joining the WTO, China's service trade has gained certain development, but there are some problems. Only by formulating effective measures can we promote the development of China's service trade.

Keywords: trade in services; status quo; countermeasures

Since the end of the last century, the focus of global economic competition is shifting from trade in goods to trade in services, and the degree of the developed service industry has become an important symbol to measure the level of modernization. At present, China has entered the development stage of building a moderately prosperous society in an all-round way, and must vigorously develop the service industry, and open up the field of expanding the service industry to the outside world as an important element of China's broader participation in international competition and integration into economic globalization.

One, the development of China's trade in services status quo

In recent years, China's service industry to achieve sustained, stable and healthy development, the development of the service industry to promote the growth of trade in services. 1989, China's total import and export of trade in services in the world ranked 30th, rose to 12th in 2000. However, due to the low starting point of China's trade in services, the foundation is poor, compared with developed countries there is still a big gap, mainly in:

1, the overall level of trade in services is poor

China's service industry is insufficient in the total amount of the proportion of the national economy is low. 2001 China's service industry added value of 3,225,440,000,000 yuan, accounting for the proportion of the GDP is 33. 6%. Compared with 46%-56% in middle-income countries and 59%-65% in high-income countries, there is still a big gap. The backwardness of the service industry makes the development of China's service trade subject to great constraints. 2002 China's total trade in services amounted to 66 billion dollars, accounting for 2.3% of the total global trade in services. In the same period, the total trade in services of the United States accounted for 16.5% of the world's total trade in services, which is more than seven times that of our country. From a general point of view, in addition to tourism and a few other industries, most areas of trade in services are in deficit. After joining the WTO, the services trade deficit is likely to further expand....

2, the internal structure of trade in services is unreasonable

1995-2002, China's total exports of services, tourism services have been in the first place, its proportion from 27. 6% to 36.5%: the proportion of financial services has been in the proportion of 19% or so; the proportion of transportation services has declined, from 27.1% to 19%. The information technology-based emerging services industry is a clear weakness, such industries in 1995, the proportion of service imports accounted for 22.9% in 2001, a sharp increase of 52.4%, is an important factor in China's services trade deficit is growing.

3, services trade management lag

As the service industry is composed of many related industries, international trade in services involves a wide range of industries, the international community requires a country to carry out overall coordination and management of its domestic service industry. At present, there are many defects in China's foreign trade in services management system, such as the central and local foreign trade in services policies and regulations there are still some differences between the services industry, the services industry, the problem of multiple management, government, and even mutual constraints have not been fully resolved, the services industry statistics are not standardized, industry standards and other aspects of the many not in line with international practice.

4, trade in services legislation is not sound

For a long time, China's trade in services legislation is seriously lagging behind, although in recent years, the Commercial Banks Act, the Insurance Act, the Maritime Law and so on, but with the broad connotation of trade in services and the development of international trade in services, compared with the requirements of the trade in services there are still many deficiencies. At present, China does not have a general law on the service industry, and the existing provisions are mainly manifested in the regulations and internal documents of various functional departments, which are not only at a low legislative level but also lack coordination, thus affecting the unity and transparency of China's legislation on trade in services.

The impact of WTO accession on China's trade in services

After China's accession to the WTO, the market for services will be further opened to the outside world on the basis of the original, which will have a profound impact on the development of China's trade in services.

1, the marketization of trade in services to further accelerate the process

Liberalization of restrictions, open markets is the key to the development of trade in services. Accession to the WTO, part of the service industry market access, will no longer be controlled only by the relevant domestic departments, but to implement the WTO commitments of the Government of China, which will be conducive to breaking the monopoly situation in some domestic industries, and is conducive to the domestic industry to learn from the advanced experience of foreign countries, so as to improve the quality and level of services, and further promote the development of China's service industry and the enhancement of international competitiveness.

2, conducive to improving China's investment environment

Investment environment is not only embodied in the highway, communications, power supply and other hardware, more and more embodied in the financial, distribution, professional services, such as productive services, such as the completeness and quality. China's service industry is generally backward, and productive services are more backward, which is an important reason for foreign investors fancy China's market. Foreign travel in the service industry will attract more foreign investment into China's service industry, which will strongly promote the service industry, especially the rapid development of productive services, improve the soft environment for investment in China, and then drive the development of the entire domestic economy.

3, conducive to the introduction of new types of services

China's service industry backwardness, to a large extent, is manifested in the lack of service types and varieties, many service areas need to fill the "domestic gap". In the World Trade Organization division of 143 industries, China's commercialized tax services, polling services, credit inquiries and other industries, basically in a blank state. In many industries, there are still a large number of gaps in specific service areas and service varieties. The opening up of the service market and the entry of foreign capital will, to a considerable extent, make up for the various gaps in the development of China's service industry and meet the various needs of domestic economic development and people's lives.

4, conducive to a deeper level of participation in the adjustment of the structure of the world economy

Driven by the trend of economic globalization, the global service industry is also brewing in the world-wide adjustment. Accession to the WTO is conducive to China to take advantage of the developed countries to overseas transfer of labor-intensive, capital-intensive services, to attract foreign investment, improve the internal structure of China's service industry; is also conducive to China's service providers to enter the international market, the implementation of the "going out" strategy, expanding the export of trade in services.

Three, the main measures to enhance the competitiveness of China's trade in services

1, optimize the structure of the service industry

Vigorously develop the modern service industry, focusing on the development of information, science and technology, consulting, legal and other industries, to drive the overall level of the service industry. Actively develop new service industries, such as real estate, property management, tourism, education and training, culture and sports, to form a new economic growth point. Restructuring and reforming traditional industries, using modern business methods and service technologies, focusing on the transformation of trade and circulation, transportation, catering and other industries, to improve the level of technology and operational efficiency.

2. Liberalizing market access for service industries

Changing the situation of serious monopoly operation and overly restrictive market access in some industries, and gradually forming an open, transparent and standardized market access system according to the qualifications of market entities and service standards. Accelerate the reform of the management system of monopolized industries, relax the qualification conditions for market access in some industries, and encourage the non-state economy to participate in the development of services in a wider range of areas. It is also necessary to reform the administrative approval system for market access and reduce the number of administrative approval programs.

3, multi-channel to increase investment in the service industry

Central and local governments at all levels, should be appropriate to arrange for a certain amount of investment as a guide to accelerate the development of the service industry, mainly for the state to encourage the construction of the service industry construction projects of the interest rate or subsidies in order to attract more bank credit funds and social input. Banks should be on the basis of independent review of the loan actively to meet the loan conditions of the service industry enterprises and their construction projects to issue loans. Encourage eligible service enterprises to enter the capital market financing.

4, strengthen the organization and leadership of the service industry

Further change the concept of unity of thought, awareness-raising, the service industry to the same important position as agriculture and industry. Governments at all levels to effectively fulfill their responsibilities to accelerate the development of the service industry to create a favorable environment. Formulate and improve the laws and regulations to regulate the behavior of service industry market players and market order, and provide legal protection for the development of the service industry.

References:

[1] Wang Kepei. On the Development Prospects of China's Foreign Trade. Journal of Sichuan Institute of Technology (Philosophy and Society Edition). 2003,(3).

[2] Tong Jun. WTO and the development of China's service industry [J]. Journal of Liangshan University.2002,(4).

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On the Problems and Countermeasures in the Development of China's Trade in Services

Author: Shen Mingqi Updated Time: 2006-2-6 Hits:

Executive SummaryCurrent researches on the trade in services are largely Most of the current research on trade in services focuses on the globalization and liberalization of trade in services, as well as the protection policy of trade in services after China's accession to the World Trade Organization (WTO). This paper comprehensively discusses the development status and countermeasures of China's trade in services from a macro point of view. It mainly adopts the method of combining theoretical analysis and empirical analysis, unifying overview and argumentation, and analyzes the comparative advantages and disadvantages of China's service trade through the comparative study of China's service trade over the years in terms of import and export trade volume, import and export trade structure, etc. It also puts forward corresponding countermeasures, such as perfecting the protection policy of China's service trade after its accession to the WTO. And put forward corresponding countermeasures, such as improving the legal system of China's trade in services, reducing the threshold of market access, updating the concept of trade in services, actively participating in the bilateral and multilateral negotiations on international trade in services, and promoting the liberalization of trade in services and other countermeasures to build on our strengths and avoid our weaknesses, vigorously develop China's trade in services, and enhance the international competitiveness of China's trade in services, so as to make it become a new point of growth for China's national economy.

Keywords trade in services World Trade Organization General Agreement on Trade in Services

I, China's trade in services development of the status quo

(a) China's import and export of trade in services in recent years

As shown in Figure 1, China's total trade in services in the period 1998-2002 ③ rising, the amount of imports and exports are also constantly increasing, but always show a trade deficit. This proves that China's service trade is not competitive enough in the international market. And this trend is difficult to change in the short term.

(II) China's current service trade system situation

Since the 1980s, China has promulgated and implemented a number of laws such as the General Principles of Civil Law, Foreign Trade Law, Commercial Bank Law, Maritime Law, etc., which have built a framework system of the basic rules of trade in services for people. Most of these laws refer to the corresponding provisions of civil law and common law, and are formulated and implemented in accordance with the international conventions to which China is a party.

Currently, China has joined the WTO, and the private capital and foreign capital entering the service industry are increasing rapidly, which provides great potential and development space for the development of the service industry. And the national policy-oriented efforts to promote the development of the service industry are also gradually increasing. The General Office of the State Council forwarded the Opinions of the State Planning Commission on Several Policy Measures for Accelerating the Development of Trade in Services during the Tenth Five-Year Plan Period in November 2001, proposing policy measures for accelerating the development of the service industry, which is undoubtedly a powerful impetus to the development of the service industry. Subsequently, the Chinese government has promulgated and implemented a number of relative policies and regulations in the twelve major areas of trade in services. For example, the Notice on the Release of Eight Transportation Industry Standards such as the Data Dictionary of Port Management Information System, the Notice of the State Administration of Foreign Exchange on the Problems Related to the Sale and Payment of Remittances for Non-Trade Items Not Specifically Provided for in the Existing Laws and Regulations, the Notice on Strengthening the Planning of Urban Commercial Networks, the Notice on the Survey on the Implementation of the "Enterprise Accounting System" by Foreign Invested Enterprises Circular on the Investigation of the Implementation of the Enterprise Accounting System by Foreign-Invested Enterprises", etc. As for the opening up of China's service market, a certain degree of openness has been stipulated for the retail industry, transportation industry, telecommunication industry, education industry, banking industry, etc., so as to gradually realize the commitments made by our government on the accession to the WTO. In order to integrate China's trade in services into the world trade in services, and in order to make China's trade in services develop better, the General Agreement on Trade in Services (GATS) of the WTO has become the basis for the construction of our trade in services system. Therefore, our current or being drafted to formulate, are from the promotion of perfecting China's trade in services and the early development of China's legal system of trade in services market norms with the world in the direction of development.

(C) the development trend of China's trade in services

The WTO recently released the 2002 annual report on global trade, global trade grew by 2.5% last year, of which the total trade in goods amounted to 6.24 trillion U.S. dollars, an increase of 4% over the previous year, the trade in services amounted to a record 1.54 trillion U.S. dollars. The U.S., Germany, Japan and France continued to maintain the top four positions in world trade, while China surpassed Britain to become the world's fifth largest trading nation. The report analyzes that global trade in 2002 achieved resilient growth against a backdrop of slowing cross-border corporate investment, increasing exchange rate risks, and a tendency for businesses and consumers to be conservative, thanks mainly to strong demand in the U.S. market and the rapid development of East Asian countries, especially China.

Recently, the State Administration of Foreign Exchange (SAFE) also released China's balance of payments for 2002. In 2002, China's balance of payments current account surplus of 35.422 billion U.S. dollars. According to the caliber of balance of payments statistics, the export of goods amounted to US$325.651 billion and the import of goods amounted to US$281.484 billion, a surplus of US$44.167 billion; the income of service items amounted to US$39.745 billion and the expenditure was US$46.528 billion, a deficit of US$6.784 billion; the income of revenue items amounted to US$8.344 billion and the expenditure was US$23.289 billion, a deficit of US$14.945 billion dollars; current transfer income of 13.795 billion dollars, expenditure of 811 million dollars, a surplus of 12.984 billion dollars. The table shows that in 2002 China's balance of payments current account, capital and financial items continue to show a double surplus, international reserves to maintain growth, the overall balance of payments in good condition.

It can be seen that the outstanding performance of China's economy in the world economy has attracted worldwide attention. And trade in services will surely flourish in such a favorable domestic and international environment. Although the current by the global economy continues to weaken, the Iraq war brought about by political instability and atypical pneumonia three major factors of constraints, but due to China has a broad internal market and efficient macro-control mechanism, as in previous years in the face of the Asian financial crisis, the 9.11 incident of the emergence of the same can overcome the many unfavorable factors and maintain sustained economic growth.

Two, China's trade in services development problems

(a) unreasonable structure of trade in services

As shown in Figure 2, 1998-2002, the total trade in services constitute the proportion, in addition to the major service industries in 2001, the proportion of trade in the major service sectors is relatively uniform, the other years of trade in the service sector are vastly different, and tourism, transportation, and other business services account for a greater proportion. Other commercial services accounted for a larger proportion. Therefore, it is not difficult to find that China's trade in services in the process of development needs to carry out long-term structural adjustment, so that the major services trade industry can be balanced development.

(2) The legal system and market system of trade in services are imperfect

While the Chinese government has been trying to push forward the reform of the management system, there are always some regrettable loopholes, and these flaws in the management system have brought about considerable obstacles to the development of trade in services.

1, the service industry's industry monopoly. Some of China's industries such as telecommunications, finance, insurance, education has a strong monopoly, not only undermined the normal order of fair competition, but also led to the lack of innovation in the service industry and the lack of efficiency. China's service industry in order to adapt to the future development of the service industry to open up the environment, the inevitable requirement to break the monopoly of the industry, to achieve the liberalization of trade in services.

2, imperfect services trade guarantee system. Trade in services protection system is imperfect, mainly refers to the service industry in some vulnerable industries, such as data processing, technical services, consulting, professional services, etc. Need to have some specialized protection policy to deal with China's accession to the WTO after the impact of foreign related industries on these industries, so that it can grow healthily and not to die. At present, the Chinese government in telecommunications, banking, education and other industries to develop a more comprehensive protection policy, to a certain extent, also affects the liberalization of trade, so how to develop an effective trade protection policy, both to make the healthy development of the domestic trade in services industry and to ensure the liberalization of trade, it is necessary to WTO's GATS to conduct a serious study of learning.

(C) services trade transactions backward

Modern e-commerce in the field of trade in services, profoundly affecting the form of global business and trade and market structure, affecting the people's economic life and social lifestyle, accelerating the transformation of the industrial society to the information society.

According to statistics, there are more than 1,000 different e-commerce websites in China, among which there are 677 B to C ④, 370 B to B, and 620 ISPs ⑤, with last year's B to C transaction amounting to RMB 390 million and B2B transaction amounting to RMB 6.77 billion. There are different B to B, B to C and C to C business models, and different e-commerce platforms and solutions, but on the whole, they are spontaneous, localized, repetitive, lack of technological innovation, lack of overall planning and unified norms, and there are a lot of websites whose business models are purely imitating those of foreign enterprises, which are not adapted to China's national conditions and are not conducive to the development of e-commerce. This issue has aroused widespread concern. In addition, from China's current e-commerce development reality, the network structure is complex, different industries, different networks can not be interconnected, a variety of resources are difficult to fully **** enjoy, network applications lag behind the rapid development of network technology, traditional enterprises are difficult to adapt to the rapid development of information technology.

It is predicted that by 2003 the value of global e-commerce transactions will exceed one point two trillion dollars. In the next 5-10 years will be the information technology continues to soar, the new economy, the rapid growth of the global economic restructuring of the important period, but also will be China's vigorous development of e-commerce, information technology to drive industrialization, participation in globalization, the realization of China's modernization of the key period. The development of e-commerce is no longer just a matter of basic economy, nor just a matter of business model division, but an important issue related to China's competitiveness and survival and development in the future information economy and society.

(D) the concept of trade in services is backward

China's trade in services industry, in the past for a long time in a closed environment, bound by certain stereotypes and the influence of the deep, and thus the small size of the enterprise, poor service facilities. Ideological backwardness, low level of service quality, it is difficult to adapt to China's accession to the WTO after the full opening up of the economic situation, it is more difficult to compete with foreign multinational corporations in the field of trade in services.

In China's economic theory, the service is still defined as the service belongs to the circulation area, so the service does not create value. And this thesis in the WTO will expand the service trade, the connotation of the deepening of the service program not only provides the use of value, some also create value. There is a long time, China's economic life, the service sector to treat customers have a unified rule, that is, equal treatment. In order to show that the poor do not love the rich, such as banks on the economic benefits of bad, low capital retention rate of enterprises also provide the same funds lending services, the results are often blood money, but also accompanied by labor costs, communication costs and other expenses. Not like foreign banks "to see the customer dishes", the customer segmentation, both to ensure the safety of foreign exchange collection, but also to meet the needs of customers.

Three, the development of China's trade in services, a number of countermeasures

1, improve the basic laws of trade in services, enhance the operability of the law. In order to improve the international status of China's service industry, it is necessary to start from improving the degree of competition in the industry, improve the market system of the service industry and enhance the operability of the law. Accelerate and develop industry-specific laws and regulations, such as commercial law, financial services regulations, telecommunications services regulations, transportation regulations, intellectual property rights regulations, etc., focusing on reference to international treaties and foreign legislative experience, to increase the legislative efforts to rationalize the relationship between the various laws and regulations and the service industry within the service industry, so that the trade in services in the field of laws and regulations sound, coordinated with each other *** with the formation of a clear structure, hierarchical, interconnected, the organic whole. The organic whole of the sparse but not leakage.

2. Realize the transformation of the growth mode of the service industry. Mainly refers to the rough, extensible to intensive, connotative change, so that the development of trade in services, trade in services, the growth of export income is really based on improving labor productivity, rather than relying on a large number of inputs of the general labor force. At the same time in the export of services, in the play of advantages, and further expand the export of labor-intensive services, but also for those who are still in the "childish" state of knowledge-intensive services industry to be appropriate protection, so that it is as soon as possible to develop and gradually open to the outside world. The general direction of China's service exports in the future should be: general labor-intensive services exports, knowledge and technology-intensive services exports as a supplement → both → knowledge and technology-intensive services exports as the main, general labor-intensive services exports as a supplement.

3, to participate in bilateral and multilateral negotiations on international trade in services, and strive for a more favorable international environment. China's accession to the WTO, the negotiating position is greatly improved. Moreover, China is also the founding and drafting party of GATS. All these are helpful to China's negotiations on trade in services. China has discussed with other parties the offers and concessions on trade in services, and has taken into account the principles and requirements of the GATS in its policy and legislation on trade in services. With the deepening of reform and opening up and the further strengthening of the trend of world economic integration, it is more and more important to continue the negotiations on trade in services on the basis of the principle of mutual benefit.

4. Update the concept of trade in services. The first is to update the concept of trade in services. The definition of trade in services is in fact very broad, and the value created in the field of trade in services can be seen in the annual WTO Annual Report. The understanding and innovation of trade in services also determines the level of development of trade in services in each country. Therefore, we have to overcome the old and rigid ideas in trade in services, bring "differentiated services "6 to the forefront, correctly respond to the trend of liberalization of trade in services, and try out the new uncharted areas of trade in services. Another issue is the concept of security in trade in services. As the industries of aviation, telecommunication, finance, consulting and advertisement are directly related to the sovereignty and security of the country, the state institutions should strengthen the security consciousness, especially in the case that the legal system of our country is not sound enough, and should adopt the policy of opening up the market in an orderly and gradual manner, selectively, step by step, and conditionally, and make the key areas related to the economic lifeline of the country, sovereignty, and security as a strategic issue to be handled, and carry out effective supervision and management to make them serve the national interests. It is also important to ensure that the market serves the interests of the country.

5, maintain and promote the original advantageous industries, while optimizing the industrial structure, looking for new growth points, innovative trade in services in the field. China's advantageous service industry is mainly concentrated in the two major aspects of labor and tourism. These two aspects in general belong to labor-intensive industries with relatively low technological content. But for our country, they are of great significance. Our tourism and labor resources are both very rich, so our input costs in these two areas are low and we are highly competitive in the world market. For example, in '95, our tourism revenue was US$8.733 billion; while in 2000, our tourism revenue was US$29.345 billion, an increase of 336% over '95; and in 2002, our tourism revenue was US$35.783 billion, an increase of 122% over 2000. However, while maintaining our advantages, we also need to increase our investment in science and technology in these two areas, improve the tourism environment and enhance the quality of labor export, so that we can better utilize our advantages. In addition, we also need to optimize the industrial structure of the service sector, and we need to make the emerging service sector take its place in the world market.

6, step by step to promote the liberalization of trade in services. China's trade in services and developed countries than the late start, the overall level of development is low, many industries are still in the infantile period. At the same time, the development of the service market is incomplete, the competitiveness of service enterprises is weak, coupled with the service industry itself has a comprehensive, complex and wide-ranging characteristics, can not aggressively promote the liberalization of trade in services, but step by step to gradually promote the liberalization of trade in services. Under the condition of ensuring the health and stability of the domestic economy, opening up the service industry in accordance with a certain proportion to ensure that the benefits of the liberalization of trade in services, globalization and integration of the process more than disadvantageous.

7, vigorously develop electronic commerce. E-commerce based on Internet technology has a special advantage, whether in the 9.11 incident, the U.S.-Iraq war, or this year's SARS epidemic, have played a significant role, so that China's economy and the world economy can move forward steadily. And the traditional trading model often shows its vulnerability in the face of the huge impact brought by unexpected events. Therefore, it is a very feasible response to vigorously develop China's network business and reduce the huge impact on the service industry and market due to similar events.

The construction of a unified e-commerce integrated service platform is the key to the industrialized development of e-commerce in China." E-commerce in the era of globalization" thematic conference held for the global e-commerce experts to study China's e-commerce application mechanism, business model and infrastructure, as well as technical standards and a series of other issues provides a good opportunity. We should vigorously promote and apply good technologies and products.

[Notes]

1. GATS is the General Agreement on Trade in Services (GATS), which was formally signed by members in Marrakech on April 15, 1994, and entered into force on January 1, 1995, at the same time as the World Trade Organization.

2. The Classification of International Trade in Services (CITS), which is provided by the WTO's Bureau of Statistics and Information Systems (SISD) and reviewed and endorsed by the WTO Council for Trade in Services. This classification is based on the GNS (General National Standard) Classification of Services Sectors, which divides the world's services sectors into 11 major categories and 142 service items.

3. The total trade in services from 1998 to 2002 was US$53.045 billion, US$55.069 billion, US$66.461 billion, US$72.601 billion and US$86.273 billion respectively.

4. B to B refers to business to business; B to C refers to business to customer.

5. ISP is the abbreviation of Internet Service Provider, which means "Internet Service Provider", and the service here mainly refers to Internet access service, i.e., connecting your computer or other terminal devices to the Internet through telephone lines.

6. Differential service: refers to the separate out of the customer to bring economic benefits to the enterprise, the implementation of different, differentiated treatment of services.

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This article was published in Education Economics and Management, 2004, No. 7

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