FDI (foreign direct investment) refers to foreign direct investment, that is, foreign investors directly go to China to buy land, factories, equipment and other factors of production to start enterprises and conduct production, generally in the form of Sino-foreign joint ventures or wholly foreign-owned enterprises. Therefore, it is a way of direct investment, because the investor directly invests and personally manages the production and operation. Usually, this is the form that local governments introduce foreign capital by implementing preferential policies. Nowadays, foreign direct investment is everywhere in China, and there are countless enterprises, such as Wal-Mart, Carrefour, Honda, Toyota, Master Kong, Uni-President, Foxconn and so on.

QFII (Qualified Foreign Institutional Investor) refers to qualified foreign institutional investors, that is, only those foreign institutional investors approved by China Securities Association can open accounts in securities brokerage companies in China for securities investment. This is a restrictive form of gradual opening up under the condition that China's capital account has not been fully developed. Its total investment is limited, and it needs to open accounts with several designated securities brokerage companies, which will act as agents, but it at least gives foreign investors a window to invest in China's securities market. Accordingly, QDII (qualified domestic institutional investor) qualified domestic institutional investor refers to domestic institutions that invest in overseas markets. They are all transitional forms. With the opening of China's capital account, this form is no longer necessary. In addition, QFII is an indirect investment method, because these funds will only enter the industrial field through the securities market. For example, after these funds are purchased from a company's stock, the company issuing the stock will use these funds for production and investment, rather than investors directly conducting production and operation.