【正文】 tion of foreign capital of concern is not money but shouldn’t be placed on laborintensive and Resourcebased processing , as well as export oriented production in relatively lowtechnology of foreign capital should focus on the introduction of foreign advanced environmentally friendly technology and absorbing foreign advanced production technology and the green production process to improve the efficiency of the utilization of resources and promote enviromental protection measures of implementing , realizing the sustainable development of China’s economy. Promote balanced use of FDI for regional harmonious Development An important starting point for designing policies to optimize the benefits from inward FDI is to have a basic under standing of a country’s ,parative advantage and develpoment helps to assess what kind of FDI can realistically be attracted as well as the possible consequences of potential in flows. Investment policy will need to consider the economy’s unique circumstances in terms of its endowments ,potential and prospects , preferably pared with alternative locations. China’s preferential FDI polices have generally favored the coastal provinces, which has led to a pronounced regional d isparity in FDI. Since 1992 , the Chinese government has implemented a series of polices to reduce FDI regional disparity and diversify in ward FDI to western and Central provinces. With the launch of the western Development Strategy in 2020 and the central China rising Strategy in 2020 , the choice of investment locations has expanded to inland areas . Wellestablished factors such as natural resources and low labor costs are not important factors in determining FDI locations with in China’s inland . Instead , policy incentives and industrial agglomeration are the most important disparities in ine and economic opportunities between the coastal and the inland regions of China have often been noted . The spillover and migration effcets of FDI on regional ine inequalities are investigated . The emphasis on FDIdriven laborintensive processingtype exports in the coastal regions is found to have attracted the relatively mobile and efficient resources from the inland regions, but have only offered limited growth linkages to them . All this has exacerbated the backwardness of the inland regions. It also appears that China is seeking to spread the benefits of foreign investment beyond China’s paratively wealthy coastal area by encouraging multinational businesses to establish regional headquarters and operations in central, western , and northeast China. Constructing Strategic industries foreign investment review mechanism In November 2020 , the NDRC released a five Year plan on foreign investment , which promised greater scrutiny over foreign capital Plan calls for the realization fo a“fundamental shift” “quanity”to “quality” in foreign investment during the period from 2020 to 2020 . The state’s focus would change from shoring up domestic capital and foreign exchange shortfalls to introducing advanced technology management expertise, and talent . In addition , more –at tention would be paid to ecology the environment , and energy efficency The plan also demands tighter tax supervision of foreign enterprises and seeks to restrict foreign firms’ acquisition of “Reading” enterprises to prevent the “emergence or expansion of foreign capital monopolies”to protect national economic security and to prevent the“abuse of intellectual p