Current Situation Of FDI In China And The Research On Location Selection

China's FDI investment has soared greatly with the process of opening up, especially after entering WTO. With the development of more than 30 years, FDI has contributed a lot in economical development, growth rate of employment and the expansion of foreign trade. However, according to official data, the provincial distribution of FDI in China is severely unbalanced. FDI in China is featured by the fact that eastern area absorbs most of FDI inputs, then comes the middle area and western area is in the bottom of the list. A direct outcome arising from this is that different provinces utilizes different amount of FDI input. Therefore, for many scholars, there arises the biggest concern of how to allot FDI in different provinces in a reasonable way.The first chapter introduces how the problem comes from, the background, importance and ways of our research. The second chapter makes some reminiscence about relevant theories. The third chapter details the current situation of FDI in China, the impact of FDI on economy and features of FDI location. With analytical models, the forth chapter analyses some problems of China's FDI location. Finally, the fifth chapter puts forward some suggestions of how to utilize FDI and reduce provincial differences.With data of 31 provinces from 2000 to 2005, the essay explains the factors that influence FDI's location in China. The essay also depicts FDI's performance and potency in every province and classifies all the provinces according to their perform index and potential index.