Service trade has now become a new driving force for economic development around the world, in which financial services trade has achieved rapid growth, and improving the competitiveness of financial services trade has also become a concern of all countries. China’s immature market and the restriction make the development of financial services trade slow all the time. Its competitiveness is far from that of developed countries and needs to be improved. Financial services trade won’t develop well without financial liberalization. Therefore, this thesis studies the impact of financial liberalization on the competitiveness of financial services trade through literature review and empirical analysis. Firstly, this thesis sums up the detailed process of China's financial liberalization from four aspects: capital account, banking, insurance and securities, and uses indicators to measure and compare the reality of China's financial liberalization with that of major countries in the world. Then, this thesis analyses the current situation of China's financial services trade and its industry structure, and uses different indicators to measure the competitiveness of China's financial services trade and compares it with that of other countries. Finally, according to the reality analysis and empirical results, this thesis puts forward corresponding suggestions for the government and enterprises. By analyzing the reality of China's financial liberalization and financial services trade, this thesis finds that although the degree of China's financial liberalization is gradually growing up, it is still relatively backward compared with developed countries. In addition, China's financial services trade has not only long-term deficit but also structural imbalance, and the imports and exports of insurance account for a large proportion of that of financial services trade. Computing the indicators of China’s financial services trade, such as market share, revealed comparative advantage index and trade competitiveness index, and comparing them with those of other countries, it shows that China has low financial services trade competitiveness. According to the study, this thesis suggests that the government should actively and steadily promote financial liberalization, while increasing the support for financial services trade and creating a good market environment; enterprises should persevere in the innovation of financial services, seize opportunities and dare to “go out”.