Abstract: The scale of the foreign direct investment (FDI)affects inevitably the industrial competitiveness of the host country or local. FDI and China's industrial evolution and promotion, the productivity all have causal relationship with each other. FDI had the positive influence on China' s industrial competitiveness by Granger causality test. We must adopt measures, based on the stresses on such elements as the national industrial policies and labor standard, to enlarge the attraction dynamics of foreign capital.