Analysis of foreign direct investment on china's industrial structure innovation

Author(s): Cheng Ye-bing

Since the beginning of reform and opening up, the international competitiveness of ChinaÂ’s economic has been enhanced. So it leads to the significant growth of foreign direct investment in our country. However, the industrial structure of foreign investment runs counter to ChinaÂ’s industrial structure optimization and orientation. It makes it impossible for that foreign investmentmaximization and ChinaÂ’s industrial structure optimization canÂ’t be directly proportional to develop. And it leads to the lack of conductivity for foreign investment in ChinaÂ’s industrial. Addressing this situation, we start with the proportional changes in composition and changes in industrial structure of FDI in the three major industries, and analyze the changes in composition of the FDI in ChinaÂ’s three industrial structures. The innovative industrial structure change is proposed and feasible suggestions of how to guide foreign investment gradually is put forward.

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