Abstract:This paper used the location quotient index (LQ) to estimate and analyze the concentration degree of the producer services of Chinese 30 provinces, municipal cities and regions. Then used the econometric model, this paper empirical tested the effects of the producer services agglomeration to the industrial structure optimization and upgrading, making industrial structure optimization(IND)as the dependent variable, the producer services agglomeration(LQ) as the core explanatory variable, and the foreign direct investment(FDI), the economic growth level (RGDP),the technological progress(TEC) ,the urbanization level (URBAN)as the control variables. The results showed that the producer services industry had the trend of agglomeration during 2005 to 2013, but the concentration degree is not balanced; the producer services agglomeration had an significant positive effect on the industrial structure optimization and upgrading; the urbanization level and the economic growth level had the promoting effect on China’s industrial structure optimization and upgrading, but the foreign direct investment and the technological progress had the negative effect. Finally, the paper proposed some suggestions on promoting the agglomeration of China’s Producer Services industry and upgrading the industrial structure.