Based on the time series data during 1991-2010, this paper uses foreign trade dependence degree measure Chinese trade openness, does empirical research on the effect of trade openness and other variables on China’s the outward FDI, investigates the effect direction of foreign trade openness on outward FDI. The results show that the foreign trade openness has negative impact on outward FDI, while technological innovation has positive impact on outward FDI.