China’s economic boom for last few decades has grabbed world attention andworld looks upon at China for its cooperation and its Outward Foreign Direct Investmentequally in developed and developing countries. This economic leadership of China hasmade its Outward Foreign Direct Investment under scrutiny. This thesis explores muchinto this arena of OFDI of China. It also tries to scrutinize the basic reasons behindChina’s emphasis on going global. It presents the data of China’s OFDI for last fewdecades and tries to observe that what regions of the world have been the centers ofChinese investment and which are the motivations behind. Apart from presentingtheoretical framework about foreign direct investment it also presents special theory aboutChina’s outbound foreign direct investment. This thesis also tries to evaluate the evolutionof Chinese policies regarding Outward Foreign Direct Investment and categorizes thesepolicies into different stages in China’s evolution of OFDI policies. With the presentationof policies in each evolutionary stage, a comparison of China’s OFDI data with respect tosuch policies has also been provided. At the end it provides some constraints regardingChina’s policy of going global and gives some recommendation to improve ChineseOutward Foreign Direct Investment in future.