Foreign investors confident in China

As of April, China has absorbed 1.3 trillion US dollars in foreign capital, Mofcom says. This makes the country the world'second largest recipient of foreign investment, just behind the United States. The total volume of foreign investment in the first four months of the year rose by 1.2 percent compared to the same period last year. The ministry says this shows that more international investors are interested in China and that competitiveness is improving.

Breaking down the various industrial sectors, the ministry says nearly half of the foreign capital poured into China's service industry last year. Investment in high-end industries such as transportation and machinery manufacturing increased particularly fast.

These numbers are echoed by an April report by the American Chamber of Commerce in China. The chamber finds that nearly 70% of American businesses in China regard the country as a top destination for their investments, even though they are facing increasingly fierce competition from local businesses and rising labour costs.

The European Union Chamber of Commerce in China has similar findings in a May survey. Despite shrinking revenues last year, more than 70% of European companies are still optimistic about their growth prospects in China, and 86 percent are planning further investments.