This　paper　explores　the　importance　of　outward　foreign　direct　investment　(OFDI)　of　Chinese　firms　for　the　Chinese　economy.　Using　the　Chinese　Bureau　of　Statistics　dataset　from　2008　to　2020　and　applying　the　Principal　Component　Analysis　(PCA)　and　Data　Envelopment　Analysis　(DEA)　methodology,　we　evaluate　China’s　OFDI　environment.　Firstly,　we　determine　the　main　inputs　of　Chinese　OFDI　and　run　a　PCA　to　reduce　their　dimension.　Secondly,　when　employing　the　DEA　method,　we　take　the　year　as　the　decision-making　unit　which　allows　us　to　evaluate　the　trend　of　China’s　OFDI　efficiency　from　2008　to　2020.　Finally,　some　policy　implications　are　raised　pointing　to　the　fact　that　to　efficiently　promote　OFDI,　China　needs　to　adjust　its　policies　and　resource　allocations.　This　can　be　achieved　by　strengthening　its　ability　to　transform　scientific　research　results　towards　the　enterprises’　competitive　advantages.　Furthermore,　the　Chinese　government　should　enhance　its　policies　to　assist　and　guide　Chinese　companies　to　invest　abroad.　©　2022　Denfar　Transnational　Development　INC.