Abstract: Has FDI entry changed Chinese firm-level GVC embeddedness model? On the basis of China Customs Trade Database and China Industrial Enterprise Database, this paper depicts the dynamic evolution of Chinese firms’ GVC embeddedness, and analyzes the influence of FDI entry on Chinese firms’ GVC embeddedness. The results show that Chinese firm-level GVC’s upstream embeddedness is lower but has significant improvement from 2000 to 2013, While downstream embeddedness is much larger but continues to fall. Chinese firm-level GVC’s status is negative but rising obviously. FDI entry promotes the degree of firms’ upstream embeddedness, but has a significant lock-in effect on the degree of downstream embeddedness. Overall, FDI entry shows a significant negative effect on the Chinese firm-level GVC’s status. FDI entry in the general trading enterprises, foreign-invested enterprises, labor-intensive and low-technology enterprises have obvious negative effects on the firm-level GVC’s status. Further analysis on the dynamic evolution and changing mechanism shows that FDI entry has significant dynamic negative effect on the firm-level GVC’s status. The higher financial constraints the firm has, the greater positive moderating effect on the firm-level GVC’s status FDI entry makes. And it’s more likely to help that alleviate to be locked into the low value-added activities of GVC.