The Analysis of FDI's Impact on The Service Trade in Finance

With the advent of the post-WTO era, as well as the advancement of the liberalization process of the financial service trade, the researches on China's financial FDI and service trade are more pressing. And this paper does series of theoretical analysis and empirical testing and thinks that the financial FDI has two aspects of impact on the development of the financial service trade. On the one hand, FDI promotes the growth of China's financial service trade; on the other hand it expands the deficit of the financial service trade and it is detrimental to the increase of financial service trade's comparative advantage. Therefore, we think it is necessary to enlarge the inflow of the financial FDI, but we also should restrict it to protect our country's economic security.