| Since opening to the outside of China in 1978, the lots of FDI inflow in, especially after entering in WTO in 2001, the quantity of inward FDI reaching 52.743 billions of US dollars in 2002. The quantity of inward FDI is increasing from 27.5 billions US dollars in 1993 to 92.4 billions US dollars in 2008, and China is the largest recipient of FDI inflowing successively in the developing countries during 16 years. The policies of the opening to the outside and FDI is changing the economy of China, it is becoming one of the most important countries in the world economy.FDI is acknowledged as the combination of capitals, it is believed to promote host country's economic growth through creating jobs, improving human capital and producing spillovers of technology. A number of studies have analyzed the empirical relationship between FDI and economic growth in China, the large number of inward FDI and the international trades are the engine of China's economy, at the same time, the regional unbalance is aggravated.According to the opening policies to be carried out from east China to west China progressively, east of China has absorbed lots of FDI, owning to its geographic privilege, large market and privilege policies. The agglomeration of FDI in east China has increasing the economic growth; of course the rapid economic growth has promoted income, expanded the market and produced the agglomeration effect. So the favorable relationship has been found between FDI and the regional economic growth in east China.FDI is extensively acknowledged to have the direct effect for host country's capital, and indirect effects, just as the spillovers of technology, the effects of improving human capital and host country's institutions. At regional level, the most important effects of FDI is not just to provide the capital, the indirect effects are more worthy. The unbalanced location of FDI in China has produced important effects on regional capital accumulation, economic growth, and regional industrialization, regional international trades, regional technology progress and regional employment.Based on the economic development gap, the unbalanced location of FDI and other studies, the purpose of this paper is to examine the empirical relationship between FDI and per capita GDP growth, the capital accumulation, industrialization, international trades, technology progress and employment in east China, central China, west China and north-east China. The paper aims to prove the popular conclusion in theory:the unbalanced location of FDI is one of important factors to expand the economic gap at regional level in China. So the less developed regions need lots of FDI which is acknowledged as the combination of capitals, and Chinese government should make policies to encourage FDI towards less developed regions.The paper aims to answer some questions through analyzing on the effects of FDI to east China, central China, west China and north-east China. There are many factors to be changed at present:just as the revaluation of RMB, the rising price of raw and processed materials, and the monetary crisis in America. Facing the recession of the world economy, the first question is:Does China absorbs too much FDI? The second question is:what is the trend of east China's economy based on the export trade? The third question is:facing the transferring of FDI from east China to the southeast Asia, what should west and central China take measures to abstract FDI? Aiming these questions, the paper provides some proposals.
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