Analysis On Impact Of FDI To China’s Optimization Of Structure

Foreign direct investment develops extremely rapidly in China, itbecomes an important component of China’s economy, and whichstatus and function becomes increasingly important. and with themajor restructuring of the world’s economic structure，the optimizationof the industrial structure has become an important way which canenhance the competitiveness of a country. The changing in theindustrial structure, not only reflects economic development level andcharacteristics of a country，but also affects speed and direction of acountry’s economic development. Since the reform and open policy,our country’s industrial structure has been greatly improved，however，there are still many problems that need urgent solutions, the state is farfrom optimized. The deviation of China’s industrial structuredevelopment1is prominent，which becomes an important aspect thatrestricts the Chinese economy development.At present there are three remarkable characteristics in FDI in ourcountry：The proportion of primary industry is too low, but this data isobviously high in the secondary industry, and most investmentconcentrated in labor-intensive industries and processing industries；Thetertiary industry has developed, but it’s internal structure existsdifference and need urgent adjustment. Therefore, studying on theeffect of FDI to China’s industrial structure optimization that can favorthe adjustment to bring in foreign capital, and promote the promotionour country industrial structure.Basing on researching of the theories of foreign direct investmentand industrial structure, this paper combines the history andcharacteristics of making use of foreign investment in China, from theindustrial structure optimization and FDI related theory. This paperanalyzes the present distribution of FDI in each industry, distributions of FDI in three industries and each GDP data will be generated intoeconomic model, and makes analysis with the method of correlationanalysis and regression analysis, then research the correlation betweenFDI and GDP. The conclusion is: FDI improves China’s industrialascension, and promote the optimization of industrial structure of Chinato a certain extent.Combined with the new trend of FDI and characteristics of industrialstructure in China, the paper issues transform countermeasures of usingFDI and guide it in urgent need of industrial department. In order toadjust the industrial structure, improve quality of the utilization of foreigncapital, optimize industrial structure and improve comparativeadvantages and competitiveness of industry in china. Minimize thenegative impact to domestic industry from foreign investment, at lastrealize leap from quantity to quality in china’s economic development.