China's FDI inflow rises 16.11% in January

Tuesday's data also showed more Chinese firms are investing abroad as outbound direct investment by non-financial firms increased 47.2 percent year on year in January to $7.23 billion.

Investment in Japan soared 500 percent in January from a year ago, with that in Russia surging 282 percent.

Shen cited three factors driving the encouraging growth in foreign investment.

Firstly, investors' confidence has been buoyed by the reform efforts of China's new leadership, including the transformation of the government's role in market activities and economic restructuring. In particular, the ambitious master plan unveiled in November has solidified confidence in long-term investment in China.

Secondly, stable political and economic conditions, a skilled labor force, strong infrastructure support as well as streamlined government administration have made China an attractive FDI destination.

Thirdly, January's FDI inflow was mainly driven by service sector growth as China opens its service industry wider.

The inflow growth in the service sector was matched by a decline in agriculture and the manufacturing sector, the spokesman said, noting this change will play a positive role in China's industrial transformation and yield more economic returns.

"We expect FDI to maintain a good growth momentum this year," he added.

Tuesday's figures come after last year's foreign investment into China reversed a 3.7-percent fall seen in 2012 and rebounded 5.25 percent amid firming confidence in the country's growth potential.

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