Research Of FDI And China's Second Industrial Structure About The Optimization

With the continuous development of economic globalization, economic links of between countries have become closer, goods and capital become very frequent in the flow of international,especially multinational companies investing in the global have a profound impacted on the industrial structure of the host country and economic development. This is mainly because that FDI not only brings some money to the host country, but also brings a package of factors of production (including advanced technology, management experience, business know-how, etc.). These factors of production through the rational integration inputting to the host country markets can bring some spillover effects, industrial relations, competition and the demonstration effects and a series of production effects. It brings larger effects than the simple technology transferring to the host country. As we know, technology is determinants of industrial structure of a country. Therefore, the entry of FDI will brings to the host country's industrial structure and upgrades some positive effect.Practical experience of three decades of reform and opening up shows that FDI investment changing in our industry is the important factors of the transformation of industrial structure. The inflowing of FDI and bringing advanced technology, modern management experience and technology spillover effect will promote the technological progress and labor productivity in different industrial sectors of china and also indirectly contributed to the optimization of industrial structure and upgrade. Although the investment of many multinational companies is to pursue maximize of their own interests and is based on its global strategy, it effects on China's industrial development and industrial restructuring objective. Especially within the industry in terms of the second, this effect becomes more apparent.Firstly, the paper elaborates the mechanism of FDI focusing on the optimization of the industrial structure according to the theory of FDI and Industrial Structure, And I collects and sorts the basis data of the secondary industry of china, in order to comprehensive analyze the distribution of FDI in the second industrial structure in China's reform and opening up, especially since China's accession to WTO.I summary of the FDI to the industrial structure of the effect of the second performance briefly.Secondly, the paper selects the 2001-2010 FDI in the second data to constructs model, the model is based FDI absorption of the secondary industry explained variable, the severity of the proportion of industrial added value and high-tech industries accounted for the explanatory variables. Thirdly, the paper tests the correlation of FDI between and high-class industry using statistical software. Results show that FDI accelerates the development of heavy industry, while the role of high-tech industry is not very clear. At the same time, the results show that FDI in China is weakening effect of industrial structure since the WTO accession and the negative impact is reflected gradually. The current situation in our country, the existing limitations of FDI in promoting China's industrial structure includes a certain deviation of target about orientation of foreign investment and target of foreign capital, multinational companies to take a strict technical protection measures and taking various measures to prevent transnational corporations of its advanced technology spillovers, etc.Finally, it summarizes some problems in FDI promoting the second industrial structure. This was reflected:the foreign investment structure in China's secondary industry is low and highly dispersed, China's industrial sector appears phenomenon of duplication of construction is not conducive to optimizing the industrial structure, the structure of FDI from Hong Kong, Macao and ten Asian countries are still more than the United States, Japan and Europe, some low level of FDI enterprises causing serious pollution of the environment. And put forward China's policies and proposals how to make full use of FDI on the effects of industrial structure according to these problems, it provides a certain rational approach for the government to establish a rational industrial structure and to achieve sustainable economic development.