As China's economy enters a stage of high-quality development, how to attract high-quality foreign investment has become an important issue. Using data from the 2017-2018 "China City Political-Business Relations Ranking List", empirical analysis of the impact of the new political-business relationship on cities attracting foreign investment. The empirical results show that the development of new political-business relations has promoted the inflow of foreign capital in cities. This effect is mainly realized through three mechanisms: reducing business costs, promoting business innovation capabilities, and reducing business risks. The analysis of heterogeneity shows that the improvement of political-business relations between provincial capitals and eastern cities has signififi cantly promoted the inflfl ow of foreign capital, while non-provincial capitals and central and western cities are not obvious. The research enlightens the need to further deepen reforms, accelerate the development of new political-business relations, and attract high-quality foreign capital inflfl ows.