Abstract:Inaccordancewithco-integrationmethodandVECmodel,thispaperdiscussestherelationship between services imports and FDI in services and technological progress in China based on the data from 1985to2008. Theresultshowsthatthereexists along-termstableequilibriumrelationshipbetweenthem, andservices imports andFDIinservices areaunidirectional Grangercausalityoftechnologicalprogress. VECmodelshows thatintheshort-run,thespeedof thecorrectionis veryquickfromtheshortfl uctua-tiontolong-termequilibrium,andtheeffectoftheimport fl uctuationontechnologicalprogressfl uctuation is significant.