The Relationships Between FDI And Industrial Restructuring

FDI in China has made remarkable achievements during the 30 years since the implement of the opening policy. Since 1991, FDI, an essential part of our economy, has been in the first place among the developing countries for sixteen years. The entering of FDI, to a large extent, has been improving China's industrial structure and making it in line with its economic development goals gradually. However, there still exist tons of problems including structure deviation of three major industries and single interior industry as well as low quality, which are closely linked with FDI's distribution features. Therefore, with profound changes of international and domestic environment, and under this circumstance that Chinese industrial structure upgrade into a new phase, the main method of solving this problem is how to utilize FDI effectively.The first chapter of this essay is introduction, mainly introduct the research background, domestic and international research, content and research methods and so on. In chapter two, this article review and sum up the theory and analysis about FDI and industrial structure, for subsequent analysis of this article has laid a strong theoretical basis. In the basis of theoretical analysis, according to a multitude of statistic data,it specifically analyzes new features and trends of FDI in China, the situation of China's industrial structure and industrial distributions of FDI. It makes a conclusion that FDI plays an important role in restructuring and upgrading industrial structure. This leads to the key point of the article that is the empirical analysis of FDI to China's industrial restructuring as well as the discussion of the positive and negative influences on three major industries. Objectively speaking, China should choose a proper scale of FDI according to the national industry structure goal in order to better analyze the interaction between FDI and China's industrial structure. Finally, to solve the problems in industrial structure as well as negative effects of FDI, I propose a series of measures to further adjust the industrial structure, optimize and upgrade the industrial structure.