:Hastened by open of services industry since 2006,inward capitals in line grow annually and exceed that in manufacturing in 2008.By distinguishing commercial circulation and information technology sector and by utilizing panel data of 2004 and 2011 in Pecking,Shanghai and Guangzhou,we empirically examine the impact of producer service on productivity of whole,local or foreign owned manufacturer based on FDI spillover.Results show that,manufacturing efficiency mostly driven by foreign entities employing more local talents has continuous impact.In the field of information technology,fierce competition driven by inward entities make local consumption and local market become attractive to foreigner,while also make reverse know-how spillover even more frequent.Know-how stocks become main cause of foreign investment.To improve efficiency,manufacturers are more dependent on services rather than capital itself.Government should support service development.Only when infrastructure advantages,for example,brands reputation,established to absorb local consumer,commerce and circulation industry may take the lead in opening. <<