China's overseas direct investment (ODI) is a recent development and its scale is still small. Although it has expanded to cover a range of industries from traditional to high-tech and servicing industries, its overall structure is not yet rational and its geographical distribution is concentrated in the Asian and African regions. Of China's ODI, private enterprises account for only a small amount. They lack advanced technology and expand into the international market mainly through price competition. Faced with an increasingly harsh international financial situation, China must develop plans that are more carefully selected, and improve the industrial chains in those regions that accept its investments.