Xinhua reported that China's efforts to boost more foreign investment in high tech and new energy sectors were congruent with the nation's industry upgrading goals.

Mr Zuo Xiaolei chief economist with the Galaxy Securities said that when China started its reform and opening up drive three decades ago, the inflow of foreign direct investment played an important role in boosting economy growth and creating jobs.

Mr Zuo said that "However, with the rapid development of Chinese economy, if foreign investment is only pooled into low end manufacturing industries, that is not in agreement with China's efforts to change its economic growth pattern.”

According to a statement issued after an executive meeting of the State Council or the Cabinet, chaired by Premier Wen Jiabao, China encouraged overseas investors to invest in new energy, environmental protection, high tech, modern service, advanced manufacturing sectors.

Mr Jhang Yansheng director of the Institute of Foreign Trade of the National Development and Reform Commission said that "During the post-crisis period, Chinese foreign investment environment has also gone through great changes including the rise of labor and energy costs. The quality and effectiveness of foreign investment is now more important than its scale.”

According to the 2009 Central Economic Work Conference concluded last month, more efforts would be made to promote the transformation of the economic development pattern and structural adjustment and to enhance the focus and flexibility of economic policy in 2010.

Mr Isaac Souede chairman and CEO of US based Permal Group Inc said that China's economy was full of vitality and the country's industrial upgrading and urbanization were in process, which would mean plenty of investment opportunities.

(Sourced from Xinhua)