As China’s economy continues to develop, continues to expand the scale of foreign directto China’s growth impetus has played an important role, but at the same time, but also to China’s ecological environment have a certain negative impact on the environment as awareness of the protection of the continuous enhancement of capital flows and problems have become increasingly common concern from the community。This paper reviews in recent years on foreign direct and the relationship between research, analysis of the reform and opening up since China’s utilization of foreign direct in the total change, with regional distribution of environmental pollution and and an analysis of the situation, and then use our 29 Provinces and municipalities (excluding Tibet and Chongqing) of the 1992-2006 annual FDI data and indicators of environmental pollution, constructed an econometric model, a panel co-integration analysis and Granger test, this test between FDI and environmental pollution The correlation between the results of the study show that in the long term in industrial emissions and foreign direct investment, regional industrial solid waste and emissions of two-way foreign direct investment existence of the Granger Causality, and in the short term, the only industrial solid waste Emissions of foreign direct investment is the Granger causes at the same time this paper, a simple regression model, FDI and environmental indicators (mainly industrial waste emissions) to carry out further empirical analysis, the results were consistent with the Conclusion.Finally the article on China’s future in the introduction and utilization of FDI, how to avoid causing serious environmental pollution made the following policy recommendations: active participation, improvement of international legislation and build China’s Environmental Protection green barriers, vigorously develop the environmental protection industry, and promote the upgrading of the industrial structure and improve the structure of foreign investments in strengthening international exchanges and cooperation, environmental regulations play a restrictive role, effective control of environmental pollution, strengthen governmental supervision, and strengthen the environment for foreign investment and supervision system.
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