Foreign direct investment (FDI) has been one of the most significant features of China’s economic reform and opening up to the outside world. For the last two decades China has gradually liberalized its FDI policy regime reduced restrictions and barriers to FDI and improved the overall investment environment. Together with its potentially huge and fast growing domestic markets relatively well-educated and low-cost labor forces China has become one of the most attractive destinations for FDI in the world.

Zhejiang and Jiangsu Provinces have always been the richer and developed area in China. They both lie in the Yangtze Delta which provides superior natural conditions and pleasant climate environment. Since China’s reform and opening relying on the advantaged position two provinces have become one of the most vigorous areas in the FDI attraction. Carrying on the study to FDI attraction comparison of two provinces at first we will have overall understanding of the scale mode structure and impact of FDI attraction in those provinces. At second through comparing the difference of relevant index and analyzing cause of formation we can summarize the location advantages at FDI attraction in two provinces. This can not only offer the theoretical basis to bring out strengths which can offset weakness and then utilizing FDI more efficiency for Zhejiang and Jiangsu provinces but also offer certain reference meanings for other provinces and cities in attracting FDI rationally.