Foreign investment whether in the past or in the future, will play an active role in promoting in the sustainable and stable development of China's economy. In recent years, At the beginning of the new century, the Japanese foreign direct investment has been declining and the Sino-Japanese relations deteriorated year by year. However, with China's accession to the WTO and further opening up of China's market to the outside world, the stagnation and declination of Japanese direct investment in China have been ended. Its direct investment in China has entered into a new stage of development. Japan's investment in China has witnessed tremendous changes in the determinants. Japanese direct investment to China's decision factors occur as a result of the change, therefore the strategy of Japanese direct investment in China is changing.
This paper mainly Analyses the trends of Japanese direct investment in China according to the status of the Japanese direct investment in China and the changes of determinants, such as the disappearance of China's traditional advantage, and the opening up of China's service industry, the scale of the markets expanding, the regional advantages increasingly obvious .Finally, as its direct investment trends and their impacts on our country ,this paper rises some feasible recommendations to further deepen beneficial effects of Japan's direct investment and reduces the adverse impact so that we can make full use of Japanese direct investment to service our country's economic development.