The rapid growth of the world population since 1950 and the contribution matching the GDP and the income per capita has been seen in the increase competition for FDI of the past few years. Therefore, it is well-known that FDI can contribute to economic development not only by being a source of foreign capital, but also by providing employment, opportunities, increasing competition, and most importantly transferring skills and knowledge done by spillover effects.However, these positive effects are not automatic for host countries in the long run and depend largely on the policies taking in place. Having a closer look at the People′s Republic of China(PRC) and by examining how the policies in place have attracted FDI and looking to the contributions that foreign direct invest can make to the recipient country,showing the effects in industries that are economic pushers such as the mining industry can give us the general idea. Hence, FDI has contributed positively to Chinese economic development; there are challenges in order that the People′s Republic China can effectively continue benefitting from it at a larger extent. The rapid growth of the world population since 1950 and the contribution matching GDP and the income per capita has been seen in the increase competition for FDI of the past few years. Therefore, it is well-known that FDI can contribute to economic development not only by being a source of foreign capital, but also by providing employment, opportunities, increasing competition, and most importantly transferring skills and knowledge done by spillover effects.However, these positive effects are not automatic for host countries in the long run and dependllough on the policies taking in place. Having a closer look at the People’s Republic of China (PRC) and by examining how the policies loading places by FDI and looking to the contributions that foreign direct invest can make to the recipient country, showing the effects in industries that are economic pushers such as the mining industry can give us the general idea. Therefore, FDI has contributed positively to Chinese economic dev there are challenges in order that the People’s Republic China can for continued continue benefitting from it at a larger extent.