The construction of China’s legal system for utilizing foreign investment has been gradually improved from scratch with the deepening of reform and opening-up and the reform of the economic system. Specifically, it has gone through four stages. Years from 1979 to 1991 witnessed the birth of the legal system for utilizing foreign investment with the arrival of reform and opening-up. From 1992 to 2000, with the establishment of the socialist market economy, the legal system for utilizing foreign investment was adjusted to be compatible with the newly built economy system. Later, from 2001 to 2012, around the time to join the WTO, a new legal system for utilizing foreign investment was established in line with international standards. In recent years from 2013 to 2024, the legal system for utilizing foreign investment has been improved to build a high-level open economy. Since the reform and opening up, the construction of the legal system for utilizing foreign capital has shown the characteristics of continuous adaptation of the legal system construction to the national development strategy and diversification of legislative subjects. The utilization of foreign capital has promoted the development of the domestic economy and boosted the level of foreign trade. It is a successful practice of combining opening-up to the outside world with the thought of law-based governance.