International Industrial Transference Based On FDI And Adjustment Of China's Industrial Structure

International industrial transference is one of important tool of developed country to upgrade its industrial structure and fulfill its global strategy. At same time, it is still one of important way of developing country to improve its industrial structural and technology standard. From post-war to 90s last century, there are four international industrial wave all around the world. The participating countries seized opportunity to promote domestic industrial structure by changing economic strategy and adjusting industrial structure. As we known, international trade and FDI are two driving factors of international industrial transference. Compared to international trade, FDI have deeper influence on both of host and invest countries'industrial structure. So it's meaningful to research the relationship of FDI and international production system; the working system of international industrial transference; the impact of FDI on China's industrial structure.As a result, we make following arrangement of this paper: Chapter 1, describe research background, methodology, meaning, framework, and review theories of international transference based on FDI, it focus on following theories, Product Cycle Model which is built by Raymond Vernon, Expansion Theory of Marginal which is forward by Kiyoshi Kojima. Through the study on theories, it conclude that on one hand, FDI is huge force to promote industrial structural of invest country by transferring their marginal industries to developing country in order to prolong the product's life. On the other hand, host country upgrade its own industrial structure by absorbing FDI. Chapter 2, Analyze of industrial and regional distribution of FDI. On regional distribution part, it analyzes the FDI outward and inward flow by original and national data respectively. On industrial distribution part, it mainly investigates the industrial distribution of FDI world wide. Chapter 3, international transference model based on FDI. it takes previous theory as its foundation to build up this model to explain how developed country transfers their marginal industry to developing country. It summarizes the driving force, reviews the international industrial wave, and concludes the international industrial upgrading rule which is from labor-intensive industry to capital-intensive industry to technical-intensive industry to knowledge-intensive industry. We found that when developed countries lose comparative advantage of some industries, it will transfer these industries to developing countries. Developing countries promotes its own industrial by absorbing the marginal industry. After a period, these developing countries will transfer these industries to lower developing countries. At the end, this chapter tries to find the defect of international industrial transference model and possible reason of the defect. Chapter 4, impact of FDI on China's industrial structure. It introduces the China's industrial structure and foreign direct investment, compares China's industrial structure with other countries to make the empirical foundation for strategy analysis. It conclude the upgrade mechanism of China's industrial structure which is through industrial Linkage Effects of FDI, export model effect of FDI, employment effect of FDI, split-out effect of FDI. Chapter 5, it introduces the mainly countermeasures of China's industrial structure. Firstly, Government should induct the investment direction of FDI. Because of unbalance development of industries, there are some evidently problems among them which can be explained by less investment on primary and service and slowly upgrade speed of inner-industrial structure. Secondly, strengthen the management of technical import. Thirdly, encourage R&D investment of domestic companies. At present, compared to MNC, most of domestic companies are some sizes which make these companies reluctant to put their money in R&D. In order to enhance the R&D capacity of domestic companies, we should encourage MNCs M&A cross regions horizontally and regulate relating industries vertically so as to mix production and R&D by corporation. Fourthly, promoting relating degree of related industries, paying close attention on industrial competition. The relating effect of FDI could upgrade China's industrial structure. So it is necessary to promote the relating degree of relative industries.