Chinese economy is most dynamic in the world. Since the adoption of economic reform and openness in 1980s, Chinese economy has rapidly changed, and already got the position of the second largest country of GDP, following the USA. And also China is the third largest recipient of FDI, after the USA and the United Kingdom.As we know well, mainstream of FDI in China during the past 30 years was labor-intensified industries for the purpose of making use of low wage in China. However, circumstances of inward FDI in China, has much changed in recent years, according to Chinese government's new FDI policies and the revised investment laws. Recognizing these points, this thesis aims to review recent Chinese inward FDI policy and investment-related regulations, and propose the desirable investment strategies for foreign companies. First of all, taking the opportunity of China's admission of WTO, China has allowed foreign companies to invest in most of all industries, and the amount of inward FDI in China has much increased. But recent Chinese FDI policy is focused on correcting economic structure of over-dependant on FDI and utilizing FDI as a leverage for upgrading industrial structure and strengthening global competitiveness of Chinese companies. In accordance with these policies, Chinese government is strengthening now the systems restricting FDI of environment-polluting and energy-overconsuming industries, and instead, encouraging FDI of new and high-tech industries. In addition, it is necessary for foreign companies to refer to the content of "The 12th Five Year Plan" of China to map out a strategy for investing in China. The core points of the plan are activating domestic consumption, decreasing income gap between rural and central areas of China, accelerating the development of the service sector etc. On the other hand, "Measures for Administration of Establishment of Partnership Business in China by Foreign Enterprises or Individuals" was promulgated on November 25, 2009 and came into effect as of March 1, 2010. The administrative regulation provides foreign investors with a new form of business set-up in addition to wholly foreign-owned enterprises, equity joint venture and contractual joint venture. And also, the amended "Catalogue of Advantaged Industries for Foreign Investment in Mid-West China(2008)" came into force in 2009. Foreign investment projects listed in the Catalogue are regarded as encouraged foreign investment project as provided in the Catalogue for "Guidance of Industries for Foreign Investment". Considering these contents of the Plan and the regulations, desirable strategies for foreign investors can be summarized as ① positive participation in domestic sales ② investment in services such as logistics, legal service, educational service, medical service, business service, finance, transportation, etc. ③ investment in western and central area of China(diversification of investment area) etc.