It is necessary to balance the relationship of interests between the host country and the investors by means ofcontractual legal system in order to foster the new advantages of China’s two-way international direct investment cooperation and competition. The game analysis results show that the institutional model that fully guarantees the effectiveness of investment contract can increase the possibility and stability of investment cooperation and proper enforcement guarantee and default remedy system can improve utility allocation and system incentive. In order to achieve the dual goals of fairness and efficiency，China should strengthen the mandatory constraint of investment contract in the international direct investment institutional arrangement and make targeted treaty and institutional design to protect the safety of China’s overseas investment and achieve a win-win situation between the two or more parties in the game.
