In China about 2/3 FDI are poured into manufacturing industry. The article investigates the spillovers of foreign direct investment (FDI) on Chinese manufacturing industry. And it differentiates intra-industry and inter-industry spillovers. It also analyses the influence of different industrial characters (such as technological gap, capital-intensive degree gap and competition level of domestic market in the host country) on the spillovers of FDI. And we get the following conclusion: the spillover effects will be prone to occur when the gap between foreign and domestic enterprises is small or middling and the foreign enterprises' corresponding capability is high. Finally the article provides relative policy suggestions on the basis of above analysis.