The service sector is key to China's trade upgrade
- By Zhang Monan
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E-mail China.org.cn, March 14, 2014
The global competition in the economy is shifting from the cargo trade to the service trade, and the level of advancement of the service industry and service trade has become a major indication of a country's level of modernization. To take a higher position in international competition, China must devote greater effort to the development of its service trade.
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China's service trade continued growing in 2013. |
China's service trade continued growing in 2013. The total volume of service imports and exports from January to November was $484.7 billion, a rise of 12.4 percent. The whole year's volume is estimated to reach a record high of $520 billion, or a year-on-year growth of 11 percent. This volume, however, is still much smaller than that of developed countries; and the quality is lower, leaving ample room for China to upgrade its trade pattern.
China's service trade has developed significantly in recent years, thanks to the continuous increase in the country's position in international trade. In 2012, China's service trade accounted for 5.6 percent of the world's total, making the country the third in the world. Forty years ago, it was only 0.6 percent. It is estimated that China will still rank third in 2013. However, the country's service trade is still disproportionate in its overall trade pattern. Of the world's nearly 200 countries and regions, the top 20 economies in service trade are mostly developed countries. Service exports of the United States, Britain, Germany, France, Italy, Belgium and Japan make up 10 percent or higher of each country's gross national product.
China's service trade has suffered a deficit for 12 successive years. It was not only an inevitable result of the dramatic increase of imports after China joined the World Trade Organization, but also because of the huge gap between China and the major developed economies in service trade power. Generally speaking, service trade makes up 70 percent of the global economy. In major developed countries, service trade accounts for about 80 percent of the national economy. In the world's total export volume, service trade makes up 20 percent. In China, however, the export of service accounts for less than 9 percent of its total exports.
