TheEconomicgrowththeoryshowsthatFDIcanpromotetechnologicalprogress. Thispaperan-alyzes the impacts of service FDI on productivity growth of Chinese service industries using the DEA meth odtodecompose the totalfactorproduc tivityintotechnicalefficiencyandtechnological progress. Wefind that service FDI is important for total factor productivity change，technical efficiency and technological progress .