The relation of utilization between foreign investment and trade has attracted more and more attention of scholars.The current international financial crisis is bound to have impact on the utilization of foreign capital.The paper studies the relationship between the utilization of foreign capital and the trade amount of Chinese forest products,with the purposes of utilizing foreign capital better and,if possible.circumventing various negative impacts of the international financial crisis.With a summary to the current researches about the relation between foreign investment and foreign trade,the author analyzes the status quo of these two,and uses the methods of cointegration to conduct a long-run equilibrium analysis and Granger causality analysis to study the use of foreign capital and growth of forest products trade on the basis of the data from 1997 to 2008.Furthermore,the vector autoregressive model is established to investigate the dynamic effects of these two.The results show that the use of foreign capital is the Granger causality cause of Chinese forest products trade and that there exists positive impact on the trade.Therefore,the author suggests that we adjust forestry and upgrade the industrial structure,increase the amount of timber international trade,focus on improving the efficiency and added value in the utilization of foreign capital and harmonize the industry policies with trade policies.