Why China emphasize on the development of electronics industry? Does it work? This paper analyzes the FDI policy of China¡¦s strategic industry, especially electronics industry. To maintain high economic growth, China treats electronics industry as strategic industry to upgrade other industries by its information and communication technology. Electronics industry, however, is weak on key technologies and components itself, not to mention technology upgrading. The result of this research is helpful on understanding the advantages and disadvantages China brings to foreign-invested companies in the near future. Besides, the result can be used as a China investment manual.