A Study On The Impact Of Foreign Direct Investment On China’s Service Industry

According to the 2021 World Trade Statistics Report,although affected by the COVID-19 epidemic,the global trade volume still reached $28.5 trillion,13% higher than that in 2019 before the epidemic.The global service trade volume has increased to1.6 trillion US dollars,slightly higher than the overall level before the epidemic,and the service industry has grown into an important component with strong vitality in the process of trade between different countries.As an international student from Russia,I have been living in China for several years and am aware of the increasing impact of foreign direct investment on China’s service industry.Therefore,I have chosen this topic for research.After implementing the reform and opening up policy,China has always regarded attracting foreign direct investment as an important part of its economic development due to restrictions on funds,technology,and other factors.At this stage,it has also shifted from guiding foreign investment from traditional manufacturing to service industry.In 2011,foreign direct investment in China’s service industry exceeded that of manufacturing for the first time.Although China’s service industry has developed well in attracting foreign direct investment,it cannot be denied that there are still certain problems.For a long time,it has still been in the low-end position of the service industry,undertaking the transfer of service industries from many developed countries.Therefore,in the future,China should focus on developing high-end service industries with core competitiveness in the service industry,in order to promote the overall rapid development of China’s service industry.After joining the WTO,China’s service industry market has been opened to a greater extent and has now grown into an important component of China’s national economy.In recent years,with the continuous increase of foreign direct investment in China’s service industry,Chinese service industry enterprises have not only gained many opportunities but also faced many challenges.On the basis of summarizing the relevant theories of foreign investment,the paper analyzes the current situation of foreign direct investment in China’s service industry,summarizes the existing shortcomings,and then analyzes the impact of foreign direct investment on China’s service industry from two aspects: positive impact and challenge.By constructing a regression model of the impact of foreign direct investment on China’s service industry,it is concluded that the actual utilization of foreign investment in the service industry is related to the added value of China’s service industry The number of employees in China’s service industry has a high fitting degree.From the results of the F-test and the t test,we can see that the regression equations in the model are significant.The regression coefficients of the explained variables are 1.3352 and 0.3529,respectively,indicating that the actually utilized foreign capital in the service industry has a high contribution rate to China’s service industry and service industry employment.Finally,in response to the current situation,strategies are proposed to address foreign direct investment in China’s service industry,in order to better assist the Chinese service industry in utilizing foreign direct investment,promoting service industry upgrading,and enhancing overall competitiveness.