Construction of an international trade center is the key point of Shanghai strategic plan, while current development trend is the transformation of international trade center into FDI(foreign direct investment) pivot. Therefore, the relationship between international trade and FDI is a theoretical highlight. An empirical study shows that the relationship between international trade and FDI in Shanghai is complex. In general, trade substitutes FDI and FDI guides trade. Twostage VEC model (vector error correction model) reveals that the relationship between trade and FDI was mainly substitutionary before China's entering WTO and complementaryafter that. In view of this, Shanghai government should pay attention to the longterm coordination between them and adopt structural trade and investmentpolicies.