China is still one of the world’s most attractive destinations for foreign investment, according to a report published by the United Nations Conference on Trade and Development (UNCTAD).

China has maintained stable growth by utilizing foreign investment, which increased by 6 per cent to $135.6 billion in 2015, as shown in the UNCTAD’s World Investment Report 2016.

Foreign direct investment (FDI) in real terms in the Chinese mainland was second only to the United States in 2015. China also ranks fourth in the world in terms of FDI stock, said Zhan Xiaoning, chief of the UNCTAD’s Investment and Enterprise Department and chief editor of the World Investment Report 2016.

Zhan noted a trend where, among all FDI into China, more has been flowing to capital and technology-intensive sectors, such as advanced manufacturing, and high value-added fields, like high-end service sectors.

China’s outward foreign investment has also seen compelling growth. Preliminary data showed that in 2015, China’s foreign investment grew by 4 per cent to $ 127.6 billion. China has become the major source of outward foreign investment for some developed countries. Meanwhile, with the advancement of the Belt and Road Initiative and international cooperation on production capacity, China’s investment in developing countries will also maintain high growth, according to Zhan.

Zhan also suggested China should continue to improve its foreign investment policies and legal system. As the world’s second largest economy and a major destination and source of FDI, he said, China should be more active in promoting the reform of international investment systems to benefit its own economic development.