Development of economic globalization and knowledge economy takes unprecedented increase to market scales，market scope and world productivity。Nowadays，with the detailization and development of devision，economic globalization gradually shows its feature as the international labour devision which bases on the factor advantages。This new phenomenon brings not only new forms to international production，but also new contents to the research on the partten of international trade，development of international investment and MNCs。
Study on outward foreign direct investment （OFDI）potential of China，judging by the conclusions of empirical studies，analysing the stages，scale of FDI，industries and locations choices，must be of great important theorietical and realistic significance to China persists in the belief of scientific development，makes full use of two markets and two kinds of resourses，takes in the advanced technology，copes with finiancial crisis actively，develops our opening policy，and realize the 11th“fiveyear”plan。
The methods used in this article is theoretical analysis and empirical analysis to study OFDI potential of China comprehensively。There are six chapters in this article：
Chapter 1 is introduction。This chapter bases on the statement of background，aims and significance of study，and emphasise the summary and comment of prevailing research on FDI。After that，this chapter defines two important terms，OFDI of China and OFDI potential of China，and shows that，the OFDI potential of China refers to China has strong basis and correct direction in developing OFDI，meanwhile，China has obvious trends of development and huge space of obtaining profit。At the end of this chapter，there are methods of study and the train of thoughts，as the base of detailed further study。
Chapter 2 shows a new angle of view on theoretical research of FDI。This is the main point of theoretical research in this article。This artical calls it the Synthetic Dynamic Reasons Hypothesis of Factor Advantage，which includes the classification of factors and dynamic reasons of FDI。We consider that，factors can be classified as productive factor，marketing factor，policy factor，strategic factor and opportunity factor，and different factor advantages compounds into four kinds of OFDI：maintaining factor advantages OFDI，realizing factor advantages OFDI，seeking factor advantages OFDI and fostering factor advantages OFDI。The hypothesis may contain many other prevailing theories，and may be extensively used in China and other developing countries。Bases on the hypothesis，this chapter also shows the conditions of this hypothesis，they are the condition of world economy，the level of modern industrialization of country，role of authority，operation logic of corporation，synthetic factors advantages of host country，and factor combine efficiency。