China's efforts to boost more foreign investment in high-tech and new energy sectors were consistent with industry upgrading goals, Chinese economists said.

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

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

China encouraged overseas investors to invest in new energy, environmental protection, high-tech, modern service and advanced manufacturing, according to a statement issued last Wednesday after a meeting of the State Council, or the Cabinet, chaired by Premier Wen Jiabao.

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

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 this year, according to the 2009 Central Economic Work Conference last month.

China's economy and the country's industrial upgrading and urbanization offer plenty of investment opportunities, said Isaac Souede, chairman and chief executive officer of United States-based Permal Group Inc, a leading asset management firm.

Policy and funding will be given to overseas investment in the western and central region in industries meeting environmental protection standards, the statement said.

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