The nature of cultural trade is the acknowledgement and acceptance of the cultural identity of different nationalities or countries. Cultural trade have its root in the contention for the resources of cultural identity. As a matter of fact, globalization is not simply homogenization; however, it enhances the diversity of cultural identity.Based on the economic principle, this paper aims to analyze the influences of globalization on culture, and explain the phenomenon of cultural identity caused during this process. Furthermore, through the analysis of the role of cultural identity, some feasible solutions to enhance the Chinese competitiveness of cultural trade are suggested.
