Analysis Of The FDI And The Development Of Chinese Service Industry

In the most advanced industrialized country of the world, the service industry occupies 70% of the GDP , while the service industry only accounts for about 30% of the GDP in our country. Along with the fast development of our country's economy and further opening up towards foreign countries, service industry will be the prioritize industry. Considering acclimatizing the international form and the irreversible development of our country's service industry based on domestic foreign direct investment. The reasonable usage of foreign capital to promote the service industry development of our country is our necessary choice, also the best one.This article draw a conclusion about the structure of foreign direct investment in our country is unreasonable through analyzes the present situation of our country's service industry development. The central conclusion is the foreign direct investment towards service industry occupies a less proportion, and the invests towards the modern service industry occupies a less proportion in the whole investment structure of the service industry. After the present situation analysis, the article analyzes the effect of foreign direct investment to our country's service industry. Secondly, the article analyses the factors that affect foreign capital technique effect to service industry, in which the absorptive capacity and innovation capability of Chinese enterprises, the personnel mechanisms, the level of protection of intellectual property and the local educational level have a greater impact. Then, the article analyses the development experience of Indian service industry and the existent problems about attracting investment of China. Finally, suggestions were put forward from two parts. The one is how to attract more foreign direct investment in services industry, which depends on government paying more attention to services industry, promoting market-oriented reform of the services industry, improving the level of urbanization and strengthening the foundational establishment. Another part is how to play a better role of foreign direct investment in the service industry, mainly analysis based on improving legal system construction, strengthening the quality of personnel training, improving supervision level and other aspects.