Where is Middle Earth?
China
Where is it?
China is where i think Middle Earth once was.
Evidence
China has cultural things going back very far in history. They have a rich culture which in some ways might relate to Middle Earth. China's landscape is also similar. With mountains and deserts plus rivers and access to the ocean. There is Chinese and it has been simplified therefore it could have possibly been a language spoken in Middle Earth. China also has a very large population. China Tends to have old temples and monasteries.
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These hills the middle of a field like that might resemble where the Hobbits once lived in the hills.
These mountain structures and cliffs look something you might encounter towards where Bilbo and the dwarves found the trolls or where they found the elves.
The path of stone and abstract structures look like the path maybe to the lonely mountain.
http://www.infoplease.com/country/china.html
Counter Claim
Some people might say some place like Iceland or Sweden is Middle Earth. They don't have the vast landscape that China does. China has mountains and deserts where as the other countries either have only mountains or only deserts. Also Sweden and Iceland don't have the long and rich culture that china has. Also china has been around for a long time and has a large population.
Summary
In conclusion China is the ideal location that I believe is Middle Earth. It has culture that somewhat matches with Middle Earth. They have vast land forms and a long history.