On the 2006 International Cooperation Summit for Asia-Pacific CEOs and Provincial Governors and Mayors, Mr Chai Haitao, Director of Chinese Academy of International Trade and Economic Cooperation, Ministry of Commerce revealed that they have just finished a report which shows that FDI has diverted their interest to technological development and service sector, which are the two points on the production chain. And on the mode of investment, FDI shows interests in merges and acquisition. Mr. Chai stated that in the process of innovation, China still need advanced technological cooperation at a higher level and in a broader range. Foreign capital, technology and talented persons combined with job opportunities play an important role in China's economic development. He also indicated that China has intact industry sectors, solid infrastructure condition and comparative advantage in labor force. All these combined with technological innovation, international sales network and matured management expertise brought by foreign investment formed a strong international competitiveness. He regarded that we should pay more attention to the dissemination of foreign capital and industrial structure while keeping the scale of foreign capital absorption. In industrial structure, R&D institutes and highly value added manufacturing process should be mainly introduced. And we should expand service sector, especially introduce production-oriented service. According to the new development plan made by the state, in the middle, west and northeast region of China, opening to the outside world and absorbing foreign capital should be mad top priority. We will have more business development and opportunities there.