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A quantitative evaluation on the openness of China's service industry (No 72, 2015)


By Lv Gang, Research Team on "Several Issues about Constructing a New and Open Economic System", Research Department of Foreign Economic Relations of DRC

Research Report No 72, 2015 (Total 4757)


Based on the database of World Trade Organization, World Bank and The United Nations Conference on Trade and Development, this paper evaluates respectively the openness of China's service industry relating to China's commitment on WTO accession, policy-based openness and actual openness through three methods, and makes a comparison with developed economic entities and other developing countries. The results show that there are distinct differences on openness of "cross-border supply" (Mode One) and "commercial presence" (Mode Three). Therefore, it is not proper to roughly compare the overall openness of service industry of various countries as it will not lead to clear policy implications whereas it is more meaningful to make separate comparisons of the openness of different countries under two service trade modes. The international comparison shows that China enjoys a relatively high openness in the aspect of "cross-border supply" while having a lower openness in "commercial presence". As a result, in order to further promote openness, the focus should concentrate on the side of "commercial presence".