The Analysis Of FDI's Impact On China's Industrial Structure

The last 20 years of the 20th century, economic globalization has had unprecedented development, and foreign direct investment (FDI) has developed at an unprecedented rapid, which affects global economic and all the countries located in the world profoundly. In the meantime, China has changed from a backward country into a developing country which is No.2 of GDP all over the world and attracts foreign direct investment at most within these thirty years. The sustained rapid growth of GDP makes the world admire,which results in the elevation of international status. Without reform and opening up and foreign economics, China can't obtain this achievement.Since the reform and opening up, foreign direct investment has expanded rapidly, however, the growth has been slowing down recently, because of the global financial crisis. In this paper, the development of FDI in China is divided into five periods. Then based on theoretical and empirical analysis, studies has found that the distribution of FDI in the three main industries shows a feature, the proportion of FDI in the primary industry is low, while it is congregated in the secondary industry, but in the tertiary industry it keeps increasing. And through further quantitative and qualitative analysis, research concentrates on the profound impact of change that FDI has an effect on China's three industries in sufficient detail. FDI not only promotes the improvement of economic efficiency of China's industrial sector and the development of technology-intensive, capital-intensive industries, but also leads technology progress of the tertiary industry. However, everything has a dual character, FDI also brings several negative effects. The inclined structure of FDI aggravates the deviations of industrial structure, and also brings many problems, such as environmental pollution, regional economic dissonance, technology structure imbalances and so on.When the global economic downturn triggered by financial crisis in 2007 brought negative effects, but it was a good chance to explore potential international markets. Summing up experiences of introducing foreign capital is of great strategic significance. China should attract foreign high-tech, develop the circular economy vigorously, and promote diversification of FDI to upgrade industries effectively, which will enhance China's comprehensive national strength and industry competitiveness.