Abstract: Recent years has seen a continuous shift from export-oriented FDI to market-seeking FDI in china in order to occupy the Chinese market. This paper introduces a simple difference model to investigate the impact of FDI behavior changes on the balance of payments. The research indicates that as HFDI increases in domestic market, the level of net exports brought by FDI will be incessantly put down and cause the decreasing of the surplus of balance of payments; what’s worse, as the proportion of HDI in FDI increases, the net effect of balance of payments brought by the FDI will very likely become deficit and even lead to a balance-of-payment crisis.

Key words: FDI, market-seeking FDI, balance of payments, FDI behavior changes