The Factors Affecting Effects Of Service FDI In China From A Perspective Of Absorptive Capability

As a creative resource, foreign direct investment consisting in capital, technology and management is a main path to absorb advanced technology. Academic area have make a lot of studies about how to attract FDI. China is one of the most important host countries and have obtain great achievement in attracting FDI since China open to the outside. Now, It's high time for china to study how to improve capability of spillover of FDI.Nowadays, services are proceeding prosperously and adding fuel to the development of economy. For the advantages as followed: large consume demand , needing less resources, be less harmful to the natural environment and high extra value , services are promising industries. Therefore, China can transform the way we develop economy ,adjust and update industry structures through developing services. Attracting SFDI is one important aspect to develop services, the other aspect is also important ,which is the absorptive capability of host country.In order to utilize SFDI efficiently, we should not ignore the key factor: absorptive capability of host country. According to the academy, there are many factors concerning to absorptive capability, the article emphasizes the most important ones to analyse the SFDI in China.