The aim of this study is to apply the policy analysis approach with Chinese characteristics, and to adopt the generalized least squares (GLS) method to examine the motivations and strategies of the Chinese outward foreign direct investment (OFDI) in 128 foreign countries (regions) during 2003-2010. The primary findings are that the Chinese OFDI motives are in line with its state policy objectives and also appear to contain differentiation strategies. It means that the Chinese OFDI aimed at the markets, strategic assets and technology in the advanced countries; while looking for natural resources in developing countries. In addition, the Chinese government applied the official development assistance (ODA) to the developing countries in order to reduce local political risks for its OFDI. In general, the Chinese state policies and institutions have influences on its OFDI abroad.