Research On The Influence Of FDI On China’s Security Of Industrial Structure

Under the background of economic globalization, China brings in FDI to promote technology improvement, industry upgrade and employment. However, FDI also intensifies the homogenization competition, making domestic capital lose control power in some industries and thus not good for the enhancement of industrial competitiveness. This Research combines the qualitative method and quantitative study, analyzes the influences that FDI has on industrial structure Optimization, industrial control power and industrial competitiveness, measuring the influences FDI has on China’s security of industrial structure.Industrial structure Optimization concludes upgrade and rationalization. To measure the influence FDI has on industrial structure upgrade, this research has Regression analysis on the model and draws the conclusion that FDI wisely distributed will be good for industrial structure upgrade; then adopts the method of high-tech industry percentage in second industry and comparative analysis, concludes that FDI has the positive effect on industry upgrade within the second industry. In order to estimate the effect FDI has on China’s industry rationalization, this research Chenery’s criteria structure, estimates the general situation of China’s industry rationalization after the input of FDI.As to industrial control power and industrial competitiveness, this research takes high-tech industry and Equipment manufacturing industry as examples, draws that our power of industry control has been weakened after importing FDI; through a sketch on influence of FDI on China’s industrial competitiveness, this research concludes that the negative effects of FDI on industrial competitiveness are stronger than positive effects.As the conclusion, this research claims that our country should improve the environment of importing FDI and strengthen the guide policy of foreign investment to enhance the quality and benefit of FDI. This research compounds industrial structure security and industrial structure upgrade respectively and build up the baseline of the study on the influence FDI has on industrial structure security.