Abstract: The article analyzes the economic and political factors that influence the equity structure of multinationals in their overseas investment activities. Firstly, it discusses some economic and technological characteristics of the multinationals, as well as the impact of their organizational structures on the decision making of their overseas investment. Secondly, it analyzes the economic and political characteristics of the host country that affect the equity investment of the multinationals. The article points out, in stipulating economic policies for attracting multinationals to invest in China, it is not enough to provide them and with such favorable measures as favorable taxation treatment; and it is difficult for the host country to influence the economic characteristics of the multinationals and the legal and taxation regulations of their residence country. However, by carrying out reforms, including improving government efficiency and reducing transaction fee, etc., we may increase the attraction for overseas capital fundamentally.