China's FDI at a new high in 2006

China attracted a record foreign direct investment of $ 63 billion in 2006, up five per cent over the previous year, reversing a declining trend, Commerce Minister Bo Xilai said in Beijing.

The FDI figure for the full year in 2006 reversed a downside trend in the first half, Bo said at a national conference of his ministry. The exact contractual value of foreign funds was not available.

Bo said China would make effective use of foreign funds and make the service sector a key area to attract foreign investment.

Although China has been the largest recipient of foreign investment among all developing nations for 15 years, there is much to be done to improve both its quality and quantity, he said.

China is to channel more foreign investment into research and development centres, new high-tech industries, advanced manufacturing, and the energy conservation and environmentally friendly sectors.

At the same time, investment that helps upgrade China's agriculture and traditional products is also encouraged, Xinhua news agency reported.

While receiving large amounts of FDI, Chinese companies have been actively investing overseas, Bo said. The overseas investment of Chinese companies totalled $16.1 billion last year, up 32 per cent year-on-year, he said.