11th INTERNATIONAL CONFERENCE ON
ISSUES IN ECONOMY
POLAND 17–18 JUNE 2021
ADAM P. BALCERZAK
11th International Conference on Applied Economics Contemporary Issues in Economy
Poland, 17–18 June 2021
Institute of Economic Research, Polish Economic Society Branch in Toruń, Faculty of Economic Sciences, University of Warmia and Mazury in Olsztyn
ADAM A. AMBROZIAK
SGH Warsaw School of Economics, Poland
University of Gdańsk, Poland
Trade in Services in the European Single Market: The Position of China v. EU Member
JEL Classification: F14; F15; L80; O14
Keywords: trade in services; China; EU Internal Market; service mapping; RSCA
Research background: In last decades, the importance of services in international trade was growing
steadily. Until quite recently, the developed economies were perceived as the main players in trade
in services. However, last years witnessed a change as a result of which some fast-growing emerging
markets, including China, have also become prominent actors. This strong growth of China’s trade
in services can be explained by the ‘opening up’ policy focused on the modernization of the existing
industries, the development of clean and knowledge-based industries, joining in the servitization
process, as well as the development of the service sector itself. The growth that the Chinese economy
experienced over recent years brought it to the position of the EU’s second-biggest trading partner
with the EU being China’s the biggest trading partner.
Purpose of the article: The aim of the paper is to appraise the position of China in trade in services
within the EU internal market vis-a-vis the intra-EU trade in services.
Methods: We identified the most important types of services oered by China to purchasers from
the EU countries. By using the Revealed Symmetric Comparative Advantage (RSCA) and trade
balance (LFI) indices, we classified the Chinese exports to the EU internal market by types of services
and by their trade position.
Findings & value added: We found out that China is a strong competitor in four categories of services,
and the European service providers, especially those who render these services, should be aware
of a strong and increasing competitive pressure that may lead to losing their share in the EU market
to the Chinese counterparts.