The Influence Of Exports And FDI To The Transformation And Upgrading Of Chinese Manufacturing Structure

Manufacturing industry is a national strategic industry, and its highly development is the prerequisite to realize industrialization, at the same time it decides the our country’s position of the international division of labor in the processof economic globalization, China has become a powerful industrial country and is inthe middle-late stage of industrialization. Under the background of knowledgeeconomy era in the21st century, the world economic integration makes the industrymore competitive. Therefore, it is significant for our manufacturing to keep thesustained, rapid and healthy development, which directly relates to the transformationand upgrading of the manufacturing structure. Exports and foreign investment, asimportant aspects of open economy in our country, are the inevitable choice ofenterprises to widely participate in the international market, they interact andpermeate almost every industry. So we must consider the influence of exports andforeign investment when discussing the problem of transformation and upgrading ofmanufacturing industry.This article, by expounding the current situation of Chinese manufacturingexports in recent years, foreign capital utilization and the connotation oftransformation and upgrading of industry structure, aims to analyze the export andforeign direct investment on the mechanism of transformation and upgrading ofindustrial structure. The empirical results find that the exports play a positive role inmanufacturing structure transformation, while the role of foreign investment is notsignificant. Therefore this article has a certain role for the adjustment of foreigninvestment policy and dealing with the reality of the decline in external demand.