Only those foreign companies meeting the requirements of host country are qualified to make the entrance. The paradigm of ESP is exactly an investment paradigm intending to make a match between foreign investment and host government policy. The paradigm of ESP is an analytical model firstly proposed by Koopman and Montias, two comparative economists, in 1971. Under this paradigm, environment, system, and policy have great impact on multinational company’s investment direction, location placement in international production, and production and operation strategy and its effect. Later, Dunning, in his Multinational Enterprises and the Global Economy in 1992, explained this paradigm in detail and us ed it to analyze relationship between host country and multinational company. Therefore, ESP system, including environment, system, and policies in host country, and the behavior of multinational company are two decisive variables that together influence location choosing in FDI, the former deciding the demand of host country on FDI and the latter deciding the supply of foreign fund. In Table 1, some main components of ESP and their corresponding effect are listed.