After the financial crisis in 2008, FDI in China began to slow down and China’s economic growth also fell. However China's economy has still maintained steady growth which can be attributed to the impact of FDI to China's domestic economy. The data for this study mainly comes from the Survey of Chinese Industrial Enterprises and China’s Customs dataset. This study analyses the characteristics and the mechanism of FDI’s attribution to China's economic growth. The results show that increasing FDI local sourcing and FDI extending to industrial upstream are the main mechanism.