Abstract: To theoretically discuss the domestic employment effects of Chinese manufacturing outward FDI,a international labor division model was constructed including an intermediate department which produces continuously dividable goods.Generalized least squares regression was used revealtherelationshipbetweenChinesesub-industriesofmanufacturingoutwardFDIandemployment.Results shows thatboth "scale effect" and "relocation effect" areexist,and the former would promote domestic employment while the latter reduce domestic employment. Besides,the scale effect would surpass relocation effect in industries which have elastic capital supply.