Analysis on Problems of Service FDI in China

Using the data of foreign direct investment (FDI) in China from 1979 to 2009 and the quantitative analysis method, this paper analyzes the situation and existing problems of service FDI in China. The results show that service FDI in China has been developed rapidly since 1992, the growth rate of service FDI is higher than that of total FDI in recent years, and the proportion of service FDI to total FDI has gradually increased. However, the absolute scale of service FDI is still small, the proportion of service FDI to total FDI is still too low when compared with developed countries´, and the share of the contribution to the increase of total FDI is very unstable. Meanwhile, the industrial structure of service FDI is not reasonable and excessively concentrates on the social service sectors such as real estate, leasing and business services, and wholesale and retail.