This paper examines the spatial path of the polluting industry investment location shift by using Moran Index and LISA Index, analyzes the generating mechanism of spatial spillover in environmental regulations theoretically and empirically studies the spatial spillover effect of environment regulation on polluting industry investment location shift by using Dynamic Spatial Durbin Model. Results show that the transfer of polluting industry investment in China demonstrates spatial path dependence and temporal transfer viscosity, taking on such a “Halo Model” that is centering on Circum-Bohai-Sea region and Yangtze River Delta and slowly spreading to the surroundings．Improving the strength of environmental regulations can significantly inhibit the polluting industry investment, which is mainly caused by the practice of strengthening environmental regulations in the surrounding areas. Thus, attention should be paid to synchronicity and synergy of environmental policies, and the regional environmental regulation policy of joint prevention and control can effectively promote the outward transfer of polluting industries.