Abstract: Based on the new method calculating sophistication of service import, we carry out empirical analysis about impacts of service import sophistication on China's manufacturing efficiency. The results show that: (1) generally speaking, improvement of service import sophistication can improve efficiency of China's manufacturing industry; (2) compared with traditional service import, service import in newly service sectors has much more impacts on efficiency of China's manufacturing industry; (3) sophistication of service import exerts more impacts on capital and technology-intensive manufacturing than labor-intensive manufacturing. Being one of most important aspects of China's manufacturing transformation; improvement of technology efficiency should not be isolated from global labor division. Therefore, to take advantage of global especially developed economies' competitive industries, and to grasp the important opportunities resulting from rapid development of global service trade, we should try to improve sophistication of service import to serve transformation of China's manufacturing.

Key words: trade in service, import sophistication, manufacturing