A　threshold　model　is　constructed　to　analyze　the　non-linear　relationship　between　the　technology　progress　of　China　and　technology　spillovers　of　FDI　from　a　perspective　of　service　industry　development,　based　on　the　city-level　panel　data　of　85cities　in　East　China　during　2005-2011.　The　empirical　results　support　the　hypothesis　of　two　thresholds　for　tertiary-industry　development.　Then　the　estimated　results　of　2SLS　regression　model　indicate　the　sufficient　industry　level　is　the　premise　for　FDI　technology　spillovers.　Moreover,　using　graphs　to　describe　the　current　status　of　it　in　East　China＇s　cities;　lastly　combing　above　all　to　propose　relevant　policy　recommendations.