China Backs Overseas Investment
 

Foreign firms will still be welcome to invest in China, despite fears inflows are swelling the country's currency reserves, a senior official has said.

Hu Jingyan, of the Commerce Ministry's foreign investment office, said China "will not change" the policy of encouraging foreign investment.

It came as the OECD said increased transparency would bring more inflows.

China drew $60.3bn(£34.3bn) in FDI in 2005 and $60.6bn in 2004. FDI rose 6.4% in the first quarter of 2006 to $14bn.

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