This paper aims to measure and analyze the unequal distribution of foreign investment among regions in China. Using official data from China Statistical Yearbook, the Almanac of China's Foreign Economic Relations and Trade, the PRC Ministry of Commerce website, and the modified Gini coefficient-a measurement of inequality proposed by Mookherjee and Shorrocks (1982), the primary finding of this study is that foreign investment has been unequally distributed among regions of China between 1985~2002. This inequality results primarily from the unequal distribution among seven economic areas, which are called ”between-area” differences.