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- China has succeeded in becoming a major player in international trade. The growth of China's exports of labor-intensive goods coincides with the entry of foreign firms. The aim of the work is to determine the role of FDI on the country's economic growth through analytical models, and we will see that China and foreign firms are both motivated to practice FDI. The work is based on a series of models and economic documents. It focuses on a comparative advantage analysis to explain capital flows to China.