Since the reform and opening up, foreign direct investment has developed at an unprecedented speed in China. So far, China has become one of the countries receiving the most foreign direct investment in the world, and its stock of foreign direct investment is second only to that of the United States, ranking first among developing countries. However, due to the gradual reform and opening up in China and other environmental factors, foreign direct investment in China shows obvious regional differences. This paper analyzes and explains the reasons for the uneven distribution of foreign direct investment in China from both qualitative and quantitative aspects. To increase the proportion of foreign direct investment in the central and western regions, the most important thing is to improve the investment environment in the central and western regions. The last part of the article puts forward some policy suggestions on how to attract foreign direct investment in the central and western regions. Keywords: foreign direct investment, regional imbalance, location factors Abstract: Since the reform and opening up, foreign direct investment has developed rapidly in China. Up to now, China ranks first among developing countries in terms of forward stock of foreign direct investment, second only to the United States in the world. However, due to China's unbalanced opening policy and other environmental factors, there are obvious regional differences in FDI in China. This paper will explain the reasons of regional imbalance of foreign direct investment in China from both qualitative and quantitative aspects. For the central and western regions, the most important thing is to improve the investment environment in order to increase the proportion of FDI inflows. The last part of the article puts forward some policy suggestions on how to attract foreign direct investment in the central and western regions. Key words: FDI, regional imbalance, location factors 1. Location selection theory of foreign direct investment The location decision of foreign direct investment is a complex multi-stage process. In most cases, foreign investors first choose the country to invest in, and then determine the domestic factory and site. Therefore, the location research of foreign direct investment actually includes two aspects: first, the country selection of foreign direct investment; The second is the domestic location choice of foreign direct investment. The main purpose of this paper is to explain the latter, that is, the location choice of foreign direct investment in China. (I) Location Theory of Foreign Direct Investment After World War II, with the continuous acceleration of the globalization of the world economy, foreign direct investment began to play an inestimable role in the international arena. Therefore, the issue of foreign direct investment has increasingly become the focus of international academic research. In recent years, there are many theoretical and empirical studies on the location of foreign direct investment, but so far, there is no unified location theory of foreign direct investment. In recent years, the theory of international production compromise put forward by Deng Ning in 1970s is still the mainstream of international direct investment location theory. Deng Ning put forward "International Production Compromise Theory" on the basis of absorbing previous studies and integrating international trade theory, industrial organization theory and location theory. According to the theory of international production compromise, enterprises must have three basic elements for international investment, namely, ownership advantage, internalization advantage and location advantage. Location advantage is reflected in the geographical distribution of the host country's market, the cost and quality of production factors, transportation costs, infrastructure, the scope and degree of government intervention, the financial systems of various countries, the differences between domestic and foreign markets, and the psychological distance formed by historical culture, customs preferences and business practices. Enterprises engaged in international production are bound to be affected by these factors. It determines the location choice of enterprises engaged in international production. See:/China/060204/14175465.html for details.