The relations between Chinese FDI and foreign trade(import and export trade) depend on the specific conditions of different countries. Various scholars made significantly different results as they had used different methods  This article, taking use of cointegration theory, analyzes the relations between Chinese FDI and foreign trade (1995-2007) , and the outcome is : there are substitution effect in longterm and complementary effect in shortterm, besides, we make the error correction models both of Chinese FDI with import and Chinese FDI with export  At last, it’s the conclusion analysis and policy recommendations