China has maintained its appeal to foreign investors, though capital inflow is slowing down.

In the first half of this year, the country received $60.891 billion in foreign direct investment (FDI), up 18.4 percent from a year ago, said the Ministry of Commerce (MOFCOM). Newly approved foreignfunded enterprises totaled 13,462, up 8.77 percent year on year.

In June alone, the FDI was only $12.86 billion, growing a minuscule 2.83 percent.

"Capital inflow from the United States and European Union is withering," said Yao Jian, a MOFCOM spokesman. "But China will maintain its attractiveness to foreign investors thanks to economic growth potential and booming consumer markets."

Global FDI flow has yet to recover to pre-crisis levels as investor confidence takes a hit from faltering growth in developed economies and inflation fears in developing economies, said Liang Guoyong, an economic affairs officer of the United Nations Conference on Trade and Development (UNCTAD).

Worse still, acute costs inflation has hurt the competitiveness of China's manufacturing industry, prompting some foreign enterprises to relocate to Southeast Asian nations, he said. Viet Nam, for instance, has overtaken China as the largest maker of Nike shoes.

Zhan Xiaoning, director of the investment and enterprise division of the NCTAD, downplayed the concerns.

"China will continue to be a major investment destination for most multinational corporations over the next two years," he said.

Thriving hi-tech industries and the service sector will lure more foreign investors, and the country's economic restructuring will also present new opportunities, said Zhan.