In the rapidly evolving global economic landscape, especially in the wake of the pandemic, the role of FDI in China has garnered significant attention. This comprehensive analysis examines the multifaceted impact of foreign investment on China’s economy, highlighting how it has been a driving force behind job creation, technological advancement, and regional economic development. With a focus on the government’s policies to attract foreign capital, such as the establishment of Hainan as a free trade port and the continuous optimization of investment environments, the article discusses the strategic importance of foreign enterprises in China’s economic resilience and growth. Furthermore, it explores the integration of foreign capital with China’s high-tech industries and the regional economic development, underscoring the symbiotic relationship between foreign investment and China’s journey towards an innovative, globally competitive economy in the post-pandemic era.