Empirical Analysis Of Structural Changes In Fdi And The China Trade

China's international trade development which is now very important to China's economy was phenomenal in the past more than two decades with China's open policy strengthening. At the same time, inflow foreign direct investment (FDI) has also developed very fast. It increased about seven hundred billion dollars in ten years, and gradually spreads into different industries and regions of China.To a host country whose trade development can be influenced by inflow foreign direct investment, the impacts of FDI are not only to the quantity, but also to the structure of trade. So, dose the inflow FDI in China have any impact to China's trade development? Is there any relationship between FDI and trade structure transformation? Answers to these questions will be the test of FDI policy efficiency and the reference to future FDI strategies for China.This article characterizes the varieties of China's trade transformation and relationship between FDI and China's trade structure promotion, qualitatively finds FDI has a positive impact on it and verifies by a quantitative method: Co-integration Analysis. The conclusion is that there is a long term and equilibrious relationship between FDI and trade structure reformation of China.