With a dualistic rather than monistic testing model,the article examines the impacts of two key industry factors on FDI intra-industry spillover in China.The result shows that the two industry factors of "competence disparity between foreign capital enterprise and industry growth" have different impacts on the dualistic FDI intra-industry spillover mechanism.Based on the empirical results,the thesis creates a simple dualistic mechanism and two factors framework of FDI intra-industry spillover in the host country's market.