Abstract
The environmental pressure brought by foreign direct investment (FDI) to China has been an increasingly common topic. It is the
current and later policy tropism to protect environment all-sided and keep the environmental elements continual use in making use
of FDI in China. Environmental effect of FDI is a "double blade sword". This paper first analyzes the environmental effects of
FDI and the terms of its positive effect, and then analyzes the negative environmental impacts of FDI in China. Further, the paper
empirically analyzes the impact of FDI on China’s Eastern, Central, Western environment by using the panel-data model. The
analysis shows that, in China, both the enlargement of FDI stock-induced economic scale and the change of FDI stock-induced
economic composition deteriorate the environment, while the FDI stock-induced technology transfer improves the environment.
The different environmental control degrees of each district in China resulted in that regional transfer of industrial pollution
occurs on a certain degree. Analysis of results about the environmental model in the three regions is also in accordance with that
of the national model. FDI produces negative effects on the three regional environments.
Although the regional distributions of FDI in China decrease progressively from East to West, the environmental influence of FDI
increases progressively from the East to the West. China should change the economic growth pathway, creatively adopt advanced
techniques which are represented by resources-saving and environmental friendly developing modes, adjust the industrial
development direction of FDI, blaze new trail in environmental control system, establish the long-term strategy and plans which
are good for sustainable development. By doing these, positive environmental effect of FDI would be achieved.