In the pace of China’s opening up to the outside world, the original “three methods of foreign investment” gradually exposed its limitations. On the basis of the original foreign investment legal system, the Foreign Investment Law has made the following innovations: First, it establishes a unified code of conduct for foreign investment; Second, the introduction of pre-establishment national treatment; The third is to expand the protection and promotion of foreign investment; Fourth, the scope of foreign investment has been expanded. The main problem of the Judicial Interpretation of the Foreign Investment Law is the validity of foreign investment contracts, which is the most urgent problem for all parties in judicial practice. The “Interpretation” provides answers to some of these questions, including the effect of foreign capital contracts restricting access to the field, the effect of foreign equity holding agreements, the behavior of circumventing laws and the effect of foreign investment contracts.