Based on China’s direct investment data of 57 countries along “The Belt and Road” from 2007 to 2017, this paper uses spatial econometric model, examines the impact of host country’s economic development, resource endowments and institutional environment on China’s outward foreign direct investment (OFDI) and tests whether there is a “Neighboring Effect” on China’s direct investment in host country. The results show that China’s OFDI tends to countries with large market scale, sound infrastructure and abundant natural resources; Good regulatory governance of the host country has a positive impact on China’s OFDI, while political stability and strictly corruption controlling have an inhibitory effect. However, regulatory governance has significant positive regulatory effect on the relationship between political stability and China’s OFDI, as well as between corruption controlling and China’s OFDI. There is a significant “Neighboring Effect” of China’s direct investment in countries along “The Belt and Road” and the type of OFDI is agglomeration and vertical compounding. The grouping test of samples shows that the factors which attract China’s OFDI in different regions and countries with different levels of economic development along the route are different from each other.