Abstract:Foreign investment plays an important role in forming industrial cluster of China, and large number of international industrial transferring further accelerates its formation. During the processes of industrial transferring, related investment in turn strengthens the industrial cluster. Through the experienced research, the authors find that industrial transferring, related investment, enterprises’ own characteristic factor as well as the host government factor together decide the formation of foreigninvestmenttype industrial cluster. Based on above kinds of factors, setting up corresponding variables, using microresearch data to estimate the parameters, the authors get results revel that related investment, operating period, profit status as well as the host government factor have significant influence on industrial cluster formation.