Citing a report from the United Nations Conference on Trade and Development, he noted China remains the world's most attractive investment destination and the investment environment is "improving rather than deteriorating" despite recent probes into foreign companies such as BMW AG and Microsoft Corp.

The FDI decline in the first seven months of the year was caused by lagging investment in export-oriented and labor-intensive sectors amid rising costs of labor, land and resources, the assistant minister added.

The 18th China International Fair for Investment and Trade will be held in Xiamen, Fujian province, from Sept 8 to 11 to promote inbound and outbound investment.

The event, the only one in China that specializes in promoting international investment, will cover the topics of national economic and technological development zones, transnational companies in China and China's investments overseas.

Top 10 most attractive FDI destinations in the world	Top 10 investors to the Chinese mainland