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Foreign direct investment (FDI) used in China in 2006 topped US$63 billion, up 5 percent year-on-year, announced Commerce Minister Bo Xilai on Monday.

It reversed a downside trend that had begun in the first half of 2006, Bo said at a national conference on commerce work held in Beijing, although the precise contractual value of foreign funds used has not been made available.

Bo said China would make effective use of the foreign funds in specific areas such as prioritizing the service sector as a key area to attract foreign investment.

Although China has been the largest recipient of foreign investment among all developing nations for 15 years, it can still improve the quality and quantity of its investments, Vice Premier Wu Yi has said.

China is to channel more foreign investment into research and development centers, new high-tech industries, advanced manufacturing, and the energy conservation and environmentally friendly sectors.

At the same time, investments going towards upgrading China's agriculture and traditional manufacturing are also being encouraged.

While receiving large amounts of FDI, Chinese companies have been actively investing overseas, said Bo.

The overseas investment of Chinese multinationals totaled US$16.1 billion last year, a 32 percent year-on-year rise.

(Xinhua News Agency January 15, 2007)