In past 30 years, there were increasingly concern on the influences of FDI on Chinese economy in that the implementation of foreign strategies. According to the analysis on the relationship between FDI and the host country's economic competitiveness, the author holds the following perspectives: the effectiveness that FDI produces on the host country depends on the latter's economic level and development mode while there is an obvious impetus from FDI on encouraging a nation's economic development. Since that there is huge interaction and mutually impact between FDI and the host country's economic level, the research of this paper will mainly focus on how to improve China's economic competitiveness by FDI strategies such as policy formulation, investment guidance strengthening, investment pattern innovating, FDI function maximizing, investment environment adjusting, investment structure improving, and sizing opportunities to advance domestic innovative capability. The contribution of this research is to realize favorable interaction between FDI introduction and competitiveness enhancement and optimize the strategies of FDI to enhance China's economic competitiveness.