How to drive the digital transformation of service industry and enable the high-quality development of service trade is one of the core propositions for the high-quality development of Shanghai's economy and society in the new era. It is the key to adapting to the trend of world economic development and seeking strategic initiative in global competition, and the only way to seize the “commanding heights” of the right to speak in international economy and governance. The mechanism of promoting the high-quality development of service trade by the digital transformation of service industry is manifested in trade creation effect, investment creation effect, channel expansion effect and inclusive growth effect of service trade. Shanghai is a leading digital economy zone with abundant application scenarios for digital transformation and high-quality development of service trade. However, Shanghai’s digital transformation of service industry and high-quality development of service trade also faces a series of constraints, and there are still obvious deficiencies in scale and structure, breadth and depth, talents and enterprises, and systems and mechanisms. Therefore, Shanghai must seize the advantages of multiple strategies such as the National Pilot Free Trade Zone and new area, Pudong Development Zone and leading area, the Expo and the integration of the Yangtze River Delta, face the opportunities and challenges of global digital technology, digital economic development and the reconstruction of digital economic and trade rules, and vigorously promote pioneering reform and leading opening up in an all-round way. We should further promote the digital transformation of the service sector and the high-quality development of trade in services.