Spatial Transfer of FDI in China and Regional Economic Development

The spatial distribution of foreign direct investment (FDI) in China is extremely uneven between the eastern coastal regions and the central and western regions. This coincides with China's gradual reform and opening policy and region-preferential strategy of using foreign capital. As China's FDI policy turns from partial to all-round opening, FDI has gradually spread from coastal regions to inland regions, showing a gradient transfer trend of "going to the North and the West". From the perspective of global industrial chain system, the transfer of FDI target location corresponds to a region's ability to undertake international industrial transfer, and in the meantime promotes its economic development and industrial structure upgrading. The study concludes that, in order to promote China's regional economic development, especially in the central and western regions, some policy recommendations are put forward for the adjustment of regional structure of FDI.