Foreign Direct Investment and China's Service Economy

Abstract

The service economy is an essential part of China's economy. To a certain extent, China is export-oriented now and actively court foreign direct investment (FDI) to advance its economic development. This paper describes the current situation that China's service economy takes advantage of FDI, analyses the challenges and opportunities that China's service economy will meet when it makes use of FDI in the context of financial crisis, and proposes the corresponding policy for China's service economy FDI (SFDI). China should stimulate the demand for services, expand service market openness, attach great importance to personnel training and the upgrading of service economy, and advocate attaching equal importance to development and environmental protection.