Abstract: With the openup of petroleum and chemical market，foreign direct investment in China’s petrochemical enterprises has witnessed a gradual rise. In recently years，industrial security，independent innovation and energy saving become the key points in attracting foreign investment in China’s petrochemical industry. However，negative effects cannot be ignored in FDI attraction and utilization. The internal strengths and weaknesses，together with the external opportunities and threat，are all closely related issues in proposing strategies on utilization of foreign capital. With the core value of improving FDI quality in China’s petrochemical industry，selecting capital，enhancing innovation capability and intensifying environment supervision are essential to promote the sustainable development of China’s petrochemical industry.

Key words: petrochemical industry, economic investment, FDI, SWOT model, foreign investment project