Most of Foreign Direct Investment (FDI) in developing countries was in China. On the other hand, FDI from China was a growing force in the world, China was already the first largest developing country to invest abroad. Contrast to Chinese inward FDI, the research on its outward FDI was fewer and focus on macroeconomic data. The purpose of this paper is to study the behavior of Chinese outward FDI. We find that central state-ownership enterprises (SOEs) prefer to invest mine industry and locate in mineral-rich country whether its risk is high or low. Central SOEs also prefer to higher degree of control as the proposition of Anderson & Gatignon (1986). The investing behavior of Non-central SOEs and private enterprises (PEs) are the same. They prefer to invest manufacture industry that divide into labor-intensive and technology-intensive. The motivation of labor-intensive manufacture industry is market-seeking and efficiency-seeking, they locate in emerging market and prefer to green field. In contrast, the motivation of technology-intensive manufacture industry is to balance its ownership disadvantages and improve its country-of-origin and product image, they locate in developed country and prefer to acquisition. We also find that the degree of nationalization have significant and positive effect on the degree of control on the foreign asset of investing firms.
