FDI transfers among developed countries and less than 20% of FDI into China that come from non-ethnic Chinese, China averages less than the investments of U.S or European Union in major Latin American countries and usually take less than 10% of U.S. FDI outflows. What’s more, Japan’s FDI into China has been reduced half from its peak in 1995, and a considerate number of Japanese technology companies withdrew their investment from China. With such a small portion of a far less important part of the global system, China is not going to threat to the world in economy. Despite there are a considerable number of argument within China that it is a huge economy nation with rapid growth rate, the true picture is far more modest if looking from inside out. Firstly, the economic power of China does not lie in the increasing rate of production, but the scale. China’s economy increase speed was almost near 10% in recent years. While in term of GDP, China’s GDP was estimated by the IMF at approximately $8.25 trillion in 2012, which is over 50% of U.S. GDP of approximately $16 trillion for the same year. In terms of purchasing Power Parity (PPP), although Chinese GDP will increase four times more, and is forecast to race past the U.S. in a few more years, the per capita ranking would only increase from 140 to 128. Although in terms of major appliances the average unit price in China is forecast to grow to US$250, this is still much less than the forecast for the USA. Volume and value gains will be sought through both emerging markets and developed markets over the long term, although it is clear over the medium term value is still going to be driven in developed North American and Western European markets. Secondly, China is the last session of the value chain of imported products for developed countries, and has been largely depending on capital, technology, equipment and component suppliants from foreign countries. The foreign companies based in China takes more than half of foreign trade share of China, and China needs to invest about $500,000 of intermediate products for and increase $1 million exports. Thirdly, China’s economy development has been unbalanced in regions and the coastal developed areas could not represent the general economic situation of China. For example, the GDP per capita of Shanghai has exceeded $3,000, which is over 10 times than Guizhou. A considerate number of construction projects in the west China have been developed by Chinese government with the challenge of funds. It needs a long time for coastal areas of China to catch up with developed countries, let alone other underdeveloped areas.>