As the main way to participate in the international division of labor and opening to the outside world, international direct investment is an important link to maintain the development of the world economy. Its essence is the allocation of international resources with the home country’s investment motives matching the location advantages of the host country. In recent years, the scale of China’s outward direct investment has doubled, and its coverage of countries and regions is also steadily increasing. However, the investment structure characteristics shown by its location distribution are still dominated by small-scale investments, and large-scale investments are highly concentrated in a few Countries and regions. In order to cope with the complex and changeable international and domestic environment, it is particularly important to rationally arrange the location of China's FDI, optimize the matching of domestic investment motives and the location advantages of the host country, and maximize the win-win development of foreign direct investment. This article uses the location selection theory of international direct investment as the analytical framework, from the perspective of the home country’s investment motivation, uses data description, comparative research, mechanism analysis and empirical analysis to analyze the characteristics and development trends of China’s FDI, and study the location of FDI in China. The selected industry distribution characteristics, from the perspective of the home country’s investment motives, explore the impact of host country’s macroeconomic environment and institutional distance on China’s FDI location selection, as well as the feedback effect of FDI location selection on the home country’s import and export trade and technological improvement. The main content of this article is divided into the following three parts, a total of 6 chapters. Among them, the first part is the theoretical basis, mainly including chapters 1 and 2. Chapter 1 is the introduction. Ask questions, and explain the theoretical and practical significance, research methods, basic structure and main content of the research. Chapter 2 is the theoretical basis and a summary of domestic and foreign literature. Through combing the important domestic and foreign early and recent documents, it systematically and comprehensively summarizes the relevant theories and empirical research on the determinants of foreign direct investment and their economic effects. The second part is an empirical study of the regional economic impact of China's foreign direct investment, including chapters 3, 4 and 5. Chapters 3 and 4 are the analysis of the current situation of China's foreign direct investment development and location selection. Descriptive statistical analysis methods and comparative research methods are used to study the historical development stages of China's foreign direct investment and the overall status quo of China's investment in various countries and regions. Chapter 5 is an empirical study of China's foreign direct investment. Using time series analysis and panel data model regression analysis and other empirical analysis methods, the trade effects of China's foreign direct investment location selection is carried out quantitative analysis. The third part is conclusions and countermeasures, Chapter 6. Put forward countermeasures and suggestions to promote the coordinated development of China's regional foreign direct investment. Based on the conclusions of empirical research, aiming at the main problems existing in the development of China’s outward direct investment and the impact of the host country’s system, we propose feasible countermeasures and suggestions to promote the coordinated and balanced development of China’s regional outward direct investment.