Analysis On The Current Situation Of Services FDI In Qingdao And The Corresponding Countermeasures

Since the reform and opening-up of China, service industry opens wider to the outside and the capital of foreign investment attracted from it is rising too. With the implementation of the promise made by China for entry into WTO, service industry will become the investment area opening widest to foreign investment. As the earliest open city among the coastal cities and one of the 15 vice-province cities, FDI of Qingdao is around tops in whole China. In 2006, Qingdao received the reward of Golden City of investment environment, which was given by the World Bank, and in 2008, the Olympic sailing game will be held in Qingdao. As a result, the soft environmental improvement will promote Qingdao service economy and the development of FDI in service industry. At this background, this article do research about the affects of FDI of Qingdao's service industry for industrial upgrading, and try to give some suggestions for attracting foreign investment in Qingdao's service industry.Firstly, the analysis deeply studies the status of services FDI in Qingdao and its problems. The analysis shows that the service FDI of Qingdao develops quickly with lower fluctuation but the proportion is also lower. The service industry is with small scale and there is structure twist inner side. However, with service industry opening wider to the outside, the situation gets improved. Compared with other developed city's service industry and the manufacturing industry of Qingdao city, the service industry openness of Qingdao is weaker now. Using foreign capital, the service industry gets very good results. The performance index is evidently higher than the national average level. Although the potential of utilizing foreign capital is very large, it has not been fully developed. The failure of the government on the investment environment and function and the lag of the third department restrict the service industries in using the foreign capital.Secondly, the essay investigates the influence of FDI from Qingdao service industry to Qingdao's economy. Service FDI takes active effect on Qingdao economical development. As the same time, it brings negative effect. The active effect includes: driving the economy of Qingdao as a whole, transferring technologies, adding up service providing, promoting export, expanding employment and promoting environment-friendly social instruction. The negative influence includes the expanding construction deflection in three industries and service industry may lead to insufficient and excessive competition, lose talented employees and bring macro-management and monopoly of technology risks. The essay also uses SPSS15.0 to inspect the relation between Qingdao service industry FDI and added value of service industry. The result shows the line-regression and curve relation between Qingdao service industry FDI and added value of service industry. However, specific service industry FDI does not relate with correspond service industry.Thirdly, according to the principle of public management and economy, it gives systematical analysis of service investment of Qingdao government departments. Strategy and policy conflicts exist in government's attracting foreign investment of service industry. The conflicts have intense relation with governmental strategy, interest, policy and function deflection.The results from theoretical analysis and testament inspection and the experience of attracting FDI from service industry in home and abroad will benefit policy making of Qingdao's attracting FDI from service industry. Qingdao should take new opportunity of international transfer of service industry, open service industry wider to the outside, adopt effective measures and promote the quality and level of service industry investment.