UN official: China remains powerful magnet for FDI

China remains a powerful magnet attracting billions of dollars in foreign direct investment (FDI),said Supachai Panitchpakdi, Secretary-General of United Nations Conference on Trade and Development (UNCTAD).

China's low-cost labor has enabled the country to become a production base for global markets, said Supachai at the 2006 International Investment Forum held Friday in Xiamen, east China's Fujian Province.

 The UNCTAD official said China has been the largest FDI recipient among developing countries for the past 15 years.

 China has set a brilliant example for many other developing countries that remain relatively marginalized. China's phenomenal FDI growth in the 1990s is a key factor behind the rapid increase in the nation's competitiveness, said Supachai.

The country has made long-term efforts in building domestic capabilities, improving its infrastructure and strengthening human resources, he said.

"You have fostered an environment that promotes the benefits of FDI as domestic firms become well equipped to collaborate with and learn from foreign companies,"said the official.

As domestic capabilities increase, China's FDI is likely to focus on higher value added production that require higher level of skills, he said.