As advanced elements, KIBS are embedded in the production and play an important role in shipping competitive advantage of manufacturing. This paper uses panel corrected standard error (PCSE) method to analyze the complex effects of Chinese KIBS on the competitive advantage of manufacturing .The results suggest that Chinese KIBS have obvious negative impact on competitive advantage of labor-intensive industries; while they have very significantly positive promoting effect on that of technology-intensive manufacturing; at the same time, they almost have no effect on competitive advantage of capital-intensive manufacturing. In addition, each KIBS sector has different effects on competitive advantage of manufacturing. Scientific research service and telecommunications &computer information services have significantly positive impact on competitive advantage of manufacturing. Financial service has asymmetric effects on different kinds of industries. As for business services, it has obvious negative impact on competitive advantage of all types of manufacturing.