The Chinese FDI development m ay say th at it b egan to app ear from the year 1978, preliminarily developed in the 1990s, had a short correction after the turn of the century, and then started to step onto the road to a great nation of the FD I total quantity. The United Nations Conference on Trade and Development (UNCTAD), recently issued the world investment forecast report showing that up to 2008, China's FD I am ounted to 92,395 million US dollars in the total quantity, breaking the 90 billion critical junction for thefirst time, and maintaining the first place in FD I absorption country. A fter China joined the W TO in 2001, China began to sign the FTAs with other counties according to the win-win principle. China has 19 FTAs under construction, among w hich 13 agreements have been signed and implemented already. This paper aim s to em pirically estimates the determinants of China’s inward FD I and com pare the transition of Occident countries and Asian countries, focusing on horizontal and vertical purposes. It also analyses the impact of Free Trade Agreement on FD I in two angles from host country to investment source country. This paper analyzes the determinants of China inward foreign direct investments(IFD Is) using a panel data set of FD Is across the 30 countries during the 2002-2013 period. Based on foreign direct investment theory, it mainly combines theoretical and empirical analysis, and uses extended-related theoretical model combined by Gravity model and Knowledge-capital model. The analysis result shows that economic scale and market similarity are positively significant and geographical distance has a positive correlation with China's FD Is from Occident countries, but is negatively significant on China's FD Is from Asian countries. O n the other hand, FTA has a positive impact on China's FD Is from Asian countries, but does not play an important role in China's FD Is from Occident countries.