Since the reform and opening up, China has actively participated in international trade, the scale of foreign investment has been expanding, and the scope of investment is wide. In recent years, the international situation is grim, the phenomenon of anti‐globalization is constantly emerging, the global economy is shrinking under the influence of the COVID‐19 epidemic, and China's foreign investment is constantly facing new challenges. Based on the international economic and social development trend and China's national conditions, Based on the modern location theory and modern agglomeration theory, this paper summarizes the location changes and characteristics of China's foreign direct investment, analyzes the influencing factors of China's foreign direct investment location choice, and puts forward comprehensive suggestions on the formulation of location strategy, so as to provide some reference for China's external direct investment location choice under the new situation.