This paper calculates the capital allocation efficiency of total,domestic and foreign capital (3-fund enterpri- ses) in China' s manufacturing industry and explores this thought into the allocation of labor.Yearly capital allocation effi- ciency and labor allocation efficiency is calculated out by sectional data model while capital and labor allocation efficiency of total,domestic and foreign capital in different factor intensive industry and different capital intensive industry are calcu- lated out by panel data model.Capital allocation efficiency of domestic and foreign capital is insignificant in China' s man- ufacturing industry;capital allocation efficiency of foreign capital is significantly higher than that of domestic capital while labor allocation efficiency of domestic capital is significantly higher than that of foreign capital;autonomous invest level of foreign capital is higher than that of domestic capital because of the govemment support;autonomous labor allocation of do- mestic capital is significantly negative and lower than that of foreign capital because of the segmentation of labor market. Therefore the fundamental methods that improve capital and labor allocation efficiency and make them develop coordinately are to establish the coordinate development of capital market and labor market,put the same attention to capital and labor of domestic and foreign capital,remove the barrier of labor market and establish the uniform labor market.