Joining the World Trade Organization of China in 2001 has accelerated the growth of Foreign trade by Chinese firms. Especially, the Foreign Direct Investment (FDI) of china has been developing very rapidly through the extensive reform-opening policy and active support system from Chinese government. But the scop of investment and the total investment amount of China compared with developed countries in the world are fewer, and the most of investment firms in china are State-owned enterprises. The purpose of this thesis is to analyse the characteristics and problems of State-owned enterprises’s FDI. The chapter 1 covers the purpose and methodology of this thesis. The theories of FDI are reviewed in the chapter 2 and the problem of investment and characteristics of State-owned enterprises’s FDI are analysed in the chapter 3. The next, I use four examples to illustrate the problems of state-owned enterprises' investment in the chapter 4.In the chapter 5, the motivations, problems and strategic analyses are discussed. Finally the chapter 6 contains conclusions and implications of this thesis. The state-owned enterprises have the policy and financial support of government, but in the process of overseas investment, the main problem is not perfect management mode and the lack of supervision.