China's foreign direct investment climate: Unchanged

China has been reiterating for months, that its attitude towards foreign investment has NOT changed. But in order to boost its growth in high-tech and innovation industries, the country is now targeting quality investors.

China has been trying to improve its foreign direct investment for some time.

At the end of 2009, a State Council meeting announced plans to improve the structure of FDI in the country.

The consensus was that stabilizing FDI could help China boost regional integration, and utilize industrial development.

In Early April, the country came up with detailed guidelines to accomplish the goals. 

Wen met with European Commission president Jose Manuel Barroso.

According to the guidelines, China is now seeking quality foreign investors in high-end, modern service, environmentally friendly sectors.

At the end of April, Premier Wen Jiabao reiterated reassurances to foreign companies that they will not be discriminated against in the Chinese market.

Wen made the remarks after meeting with European Commission president Jose Manuel Barroso. Wen stressed, that China would strive to offer all business, Chinese and foreign, fair market competition.

That was part of moves to refine and expand FDI in the country.

The global financial meltdown has pushed the world economy into recession. In 2009, foreign investment around the world dipped 40-percent. But in China, it dropped less than 3 percent.

A report from the American Chamber of Commerce in China shows, nearly 80 percent of US firms in China plan to increase their investment in the country. And nearly half are expecting their investment growth, to reach more than 10 percent.

For these reasons, China remains one of the most attractive options for foreign investors. But analysts say that in order to be accepted into the market, the foreign investment needs to benefit the Chinese development as a whole.