FDI Impact On The Upgrading Of The Industrial Structure

China began to reform and open up in 1979 and took on the path of using foreign capital, after 30 years of trial and error, China is gradually integrating into the world economy and increasingly moving closer to the center of the world economic stage. Now foreign investment has become a national economic growth important factor. Modern history of economic growth shows that the overall efficiency of the national economy of a country depends largely on whether the economic structure is reasonable. At the same time economic structure depends on industrial structure. China has been in the stage of economic transformation and industrial restructuring, how to use foreign capital to promote industrial upgrading has become the focus of the current academic research topics.Jiangsu Province and Guangdong Province are the most successful representative provinces across the country to attract foreign investment, so Jiangsu and Guangdong provinces are the research objects in this paper, from a comparative point of view to study the relationship between the provinces to upgrade the industrial structure and foreign direct investment. First, compare two provinces the current status of the industrial structure and foreign direct investment, and then use model to analyze the contribution of foreign direct investment to upgrade the industrial structure from inside and outside the industrial structure. The results show that three industries in Guangdong Province is more reasonable than Jiangsu Province but compared with developed countries, the secondary industry is accounting for less and tertiary industry is accounting for high; Jiangsu and Guangdong Provinces have large-scale foreign direct investment as a whole, but the country source of investment is single, investment is given the low-tech area, Jiangsu Province takes a advantage of the use of the developed countries of foreign investment; using high-tech manufacturing industries and three industry data, we find that the contribution of foreign direct investment to upgrade the industrial structure in Guangdong Province is larger than in the Jiangsu Province. Finally, put forward four suggestions from government, inside and outside industry and industrial aggregation.