While China has exhibited unprecedented rapid economic growth in recent decades, there have been side effects as well. Particularly, interregionaldisparity has become one of the most serious problems of China's modernization. Using cross sectional and panel data models, this paper identifies the significance of FDI inflows on China's interregional disparity and also addresses convergence issues. This paper finds that the impact of FDI inflows has been a major cause of China's interregional disparity and that FDI inflows have influenced the speed of convergence of provincial growth rates in China.