Abstract:Using the impulse response function based on VAR model,the long-term dynamic relationship between the inflowing foreign direct investment (IFDI) and the international trade during the period of 1992—2011 in western China was analyzed.From the results,it comes to the conclusion that IFDI has negative impact on the export trade in western China.Meanwhile it affects the import trade positively in western China with declining trend along with the time.On the basis of the above mentioned analysis,some policy suggestions were put forward.