Abstract: Based on provincial panel data from 2003 to 2010, a threshold model is constructed to analyze the relationship between the technology seeking FDI spillover and technology progress, which considers informatization development index (IDI) as the threshold variable. The empirical results support that labor and R&D capital were the main factors to boost the technology development in the long term. Second, the informational development level is unbalanced in areas, threshold value is highest in the east while it is lowest and centralized in the central China, and the value span is largest in the west. Third, with the unceasing development of the information level, technology seeking FDI spillover has apparently boosted the improvement of technologies both in country and west, which presents that “both ends are high, the middle is low” and significantly enhanced trend. The facilitation is gradually strengthened in the east which has the greatest contribution rate, while the inhibition is fade in the central China.