The practice of developed countries has proved that the development of OFDI can promote the optimization of industrial structure

but China’s OFDI is still in a spiraling stage

and the research of OFDI on industrial structure optimization is not deep enough. The paper uses the Grey Relation Analysis to investigate and analyze the influence coefficient between OFDI and China’s industrial structure optimization. The empirical results show that there is a great correlation between OFDI and China’s industrial structure optimization

and it has a strong impetus to China’s industrial upgrading. At the same time

by drawing lessons from the successful experience of Japan

this paper puts forward measures to promote the optimization and upgrading of China's industrial structure from the two levels of government services and enterprises. First

in terms of government services

while continuing to give full play to the government's macro-control functions

we should establish and improve the supervision system

institutional guarantee system

financial support system

etc.

and build a multi-level guarantee system that uses OFDI to promote industrial optimization and upgrading; through policy guidance

we should moderately increase OFDI in technology-based and capital-intensive industries and accelerate the external transfer of manufacturing industries with excess capacity. Second

in terms of industrial selection

OFDI should be increased in hightech industries such as information software

and investment should be increased in high value-added manufacturing industries; in terms of location selection

making full use of the "the Belt and Road" strategy to increase OFDI in Central Asia

West Asia and Southeast Asia. At the same time

we should accelerate OFDI in Africa

continue to increase OFDI for developed countries in Europe and America

and form a coordinated development of network.