| The past twenty years of reform and opening up have witnessed remarkable achievements of China's economic development, with rapid and steady GDP growth, and constant increasing of per capita revenue. Analysis has revealed that the rational industrial structural shift and upgrade and the influx of foreign investments are the driving forces for China's fast economic development. Foreign capital has not only brought to China scarce capital and technology, but also prompted the shift and upgrade of Chinese industrial structure. Against the backdrop of increasing economic globalization, foreign direct investment, which accompanies international industrial transfer, shall play a more important role in China's industrial structural adjustment, which not only changes the status quo incrementally, but also adjusts the accumulation and promotes upgrade.This paper presents an in-depth analysis of the relationship among economic growth, industrial structure and utilization of foreign investment. Through theoretic review of industrial structure, economic growth and direct investment, and through empirical analysis, this paper incorporates these three issues into an integrated framework and suggests a new basis for the path of China's future economic growth and industrial structural upgrade with a globalized view point. Pointing out that this presents both opportunities and challenges, this paper puts forward policy suggestions, emphasizing the critical role of the positioning of government under new situations.This paper first reviewed the theory of industrial structure, conducting an in-depth analysis from the conceptual framework to general principals of industrial structure evolution, pointing out that the industrial structure is not only an inevitable manifestation and results of, but also a driving force for economic development. Economic development experiences of various countries have proved that the role of structural factor in economic growth is conspicuous and prominent, particularly for developing countries in in-equilibrium development. This is due to the fact that improvement in productivity begins in a few sectors, instead of across all sectors, and is achieved through transfer among industries, to realize the re-allocation of resources. Analysis of the rapid economic growth in 1990s' America has proved that industrial structural factor plays a remarkable role even for developed countries. Through empirical analysis of China's industrial structure change and economic growth, this paper proves the effective role of structural factor in China's economic growth.China has been utilizing foreign capital for years and the role of foreign direct investment in the Chinese economy has been widely appreciated. Foreign investment, through factors such as capital, technology, industrial structural upgrade, promotes economic development in the host country. This paper points out that the role of foreign capital in industrial structural upgrade is very important to the economic growth of developing countries.Chapter Two presents an in-depth and detailed research for the industrial structural change after China's reform and opening up. China's industrial structure has achieved overall upgrade to a certain degree, with constant lowering of the portion of the first industry and constant lifting of theportion of the second and third industries, especially the rapid lifting of the industrial sectors. According to Chenery's mode provided by traditional industrial structural theories, the portion of China's industrial sector is much higher than that of standard mode. Based on that, it is believed that there exists "deviation" in China's industrial structure and the third industry should be stepped up particularly. This paper, through in-depth study of the process of China's industrialization, believes that China has yet by far completed its industrialization, with manufacturing remaining the source for China's economic growth, and analyzes the shortfalls of Chenery's mode.Based on detailed analysis of China...
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