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It has experienced rapid development since reform strategy applied in China. The growth is mainly focus on the secondary industry According to the data, the secondary industry accounted for 50.6％ of GDP in 2008. Manufacturing is an important component, accounting for 60% to 70% in the industry Therefore, it plays a decisive role in the national economy.At first, the paper introduces the basic situation of Chinese manufacturing industry and the FDI on Chinese manufacturing industry Then the paper analyzes the beneficial influence and adverse influence of FDI on Chinese manufacturing industry. Whether the large number of foreign capital brought up the technology level within the manufacturing, the paper will use specific data to study the problem through empirical analysis.The paper selects 23 sub-sectors in the manufacturing industry, using panel data during 2005-2008, and fords that from the view of statistics, FDI has positive spill-over effect on the Chinese manufacturing industry. Then the paper chooses one of key factor-technology gap to study the impact on the absorption of FDI, and concludes the small gap is beneficial. However, the limitation of the FDI spillover is obvious and there are several ways to take technology control. Aiming at the difficulties, the paper finally discuss that how to improve the level of using the FDI of Chinese manufacturing industry and proposes the relevant advice.