Senior Researcher, Academy of East Asian Studies, Sungkyunkwan University This paper examines the implications of China's ‘Open FDI Regime’ in 2018-2019, highlighting its national strategic context. The establishment of the Open FDI Regime has not only substantially liberalized FDI regulations, which had been gradually eased over decades, but also integrated the previously fragmented institutional systems into a singular framework. This includes adopting open FDI principles like ‘national treatment before market entry’ and a ‘negative list’. Behind these aggressive opening measures lies a shift in the national strategy. Domestically, it aims for the long-term vision of a domestic-marketoriented strategy, while externally coping with the US short-term offensives in strategic competition. The implication of this paper lies in its departure from the conventional view that FDI opening arises merely from globalization pressures or efforts to address legal inconsistencies, focusing instead on the political context of FDI policy evolution.