With the implementation of its “Reform and Opening-up Policy” in 1979, China began to enter international markets that were themselves undergoing globalization. The new foreign investment policies of China have not only redirected its path to economic development, but also expedited the country’s full integration in the world economic system, becoming an important driving force in the process of economic globalization.Over the past thirty years, foreign direct investment has played an active and positive role in China’s economic development, contributing to capital, productivity, taxation income, export performance and employment. It has further contributed to establishing China’s position as the “World’s Factory”. While enjoying the benefits of economic globalization, China, however, has become heavily reliant on foreign investment and international trade for its economic growth. The country, as a result, could hardly escape from the impact caused by changes in the global economic environment. Furthermore, having adopted a discriminative and differentiated approach towards foreign investors for a long time, China has not only suppressed the vitality of its domestic enterprises, but also caused an imbalance in the foreign investment structure, as well as the quality and quantity of investments. The consequences are that, apart from being unable to effectively introduce advanced technologies, China has also paid a high price that includes wastage of natural and energy resources, as well as damage to the environment. In recent years, China has realized the various problems and conflicts caused by its long-term exploitation of foreign investments. Rather than “attracting foreign funds and investors” without screening, China has adjusted its policies to “selectively accept foreign funds and investors”, bringing an end to the Super-National Treatment enjoyed by foreign investors over the past twenty years or so. The financial turmoil caused by the sub prime mortgage crisis in America in the second half of 2008, however, was a once in a lifetime event. Its impact on the world economy was rapid and affected economic activities on a global scale. China was also unavoidably affected.The current worldwide economic recession is sure to lead to changes in economic and trade adjustment policies which will significantly influence foreign investors. While this may affect the depth and speed of policy execution, we believe that China has an unshirkable and ongoing responsibility to achieve long-term and sustainable economic development. The measures to fulfill this goal include facilitating an upgrade of foreign investments and subsequent elevation of China’s industrial structure and technology standards; balancing regional development; as well as continuously introducing new dynamics for the country’s economic development and technology innovation through foreign investments. For foreign investors who have already entered or are planning to venture into the China market, it is important to keep in mind this trend and, taking advantage of the situation, adjust the relevant investment and management strategies to optimize profits and ensure sustainable business development.