| About the effect of FDI on Chinese industrial structure upgrading,many scholars have made deep researches from different angels and have achieved a lot. On the basis of analyzing the function mechanism of FDI to industrial structure,this paper takes Suzhou as an example to do some empirical researches and puts forward some suggestions for taking advantages of FDI.First of all,the author summarizes the related researches in home country and foreign countries. Then he analyzes the four types of function mechanisms of FDI to industrial structure upgrading. On the basis of the above analysis,author takes Suzhou for instance to do some empirical researches on it,which include promoting economy increasing,pushing forward the investment,adjusting the industrial structure,the effect of technology spillovers and the negative effects. The conclusion is:on the whole,FDI does not upgrade Suzhou's industrial structure,but to the second industry,especially to the upgrading of internal structure of manufacture,FDI contributes a lot.In accordance with theoretical analysis,the result of empirical examination and the existing situation of utilizing FDI,author gives counter-suggestions for promoting industrial structure upgrading in Suzhou. Firstly,we should adjust the strategy of making use of FDI. Secondly,we should strengthen the power of industry leading. Thirdly , both government and enterprise should take measures to raise the contributions of the effect of technology spillovers in Suzhou's industrial structure upgrading.
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