In this paper we carried out an empirical study on the monopolization of foreign investment in Chinas soybean processing industry from the perspective of market power and market performance.The New Empirical Industrial Organization(NEIO)model and the Allocation Efficiency Loss(AEL)model have been employed and the industry-level time series(1990-2009)data has been used.The results show that foreign investments have exerted substantial impact on Chinas soybean processing industry in terms of market structure,but the industry is still currently in the state of monopoly competition,with no strong significant monopoly power gained by foreign invested enterprises.Further tests show that lagged,yet positive correlation exists between foreign investments market share and the market power of the industry,indicating future monopolization risk in the long-run.It is suggested that future government policies shall continue to encourage healthy competition to improve resource allocation efficiency in the Chinese soybean industry,yet strengthen regulations and rules to prevent the risk of market monopolization.