Sincethereformandopeningup，FDIhasbeenanimportantimpetustotheeconomicdevelop-mentof China. Somepeopledeemthattheappreciationof RMBwillleadtothedecreaseoftheFDIinfl ow. Inordertotestthishypothesis，thispaperexploresthemainfactorsthatinfluenceFDIinfl owandexam-ines the specific impact of exchange rate regime reform of China on the FDI infl ow. We base our model ontheclassicgravitymodelandextendittoencompass exchangerate，laborcost，resources cost，etc. The result shows that resources cost is the primary factor that infl uence China's FDI infl ow，the labor cost and trade volume are also very significant，while the exchange rate is not.