Abstract:Using the data from 1992 to 2014 to empirically study the home market effect of Sino-American services trade and various industries, the paper finds that the home market effect and the traditional comparative advantage with labor force factor endowment have promoted service exports from China to the United States, but the promoting effect of the home market effect is larger than the promoting effect of the traditional comparative, transport services, tourism services, education services, financial services, insurance services, telecommunications services, advertising services, research, development and testing services, construction, architectural and engineering services have significant home market effect. The home market effect of computer and information services is not significant. Royalties and license fees, management, consulting, and public relations services, legal services, installation, maintenance, and repair of equipment services do not have home market effect. Therefore, some of the traditional service sectors have local market effect. Some emerging services trade industries also have local market effect. We can use local market effect to expand its service exports to the United States, reverse the services trade deficit, and optimize the structure of services trade.