Abstract: This paper analyses the relationship between business cycle co-movement and intra-industry trade of China with it‘s trading partners. Results show that intra-industry trade play an important role in the transmission of international business cycle, and the business cycle co-movement is enhanced along with the increase in the proportion of intra-industry trade in the whole trade between China and it‘ s trading partners. China should keep a lookout for the shocks of the world economic fluctuation.