China is continuously improving its investment environment, enhancing appeal to foreign investors, said MOFCOM. In April 2010, the State Council issued a series of new rules, allowing local governments a larger say in approving FDI projects and encouraging foreign capital into hi-tech, modern services and new energy industries.

China's economic rebalancing and manufacturing upgrade will present more opportunities to foreign investors, said Huo Jianguo, President of the Chinese Academy of International Trade and Economic Cooperation under MOFCOM.

The high-end manufacturing sectors including hi-tech, clean energy and environmental protection businesses will become favorite destinations of FDI inflows in the next few years, he said.

Slow Mobile Growth

China Mobile, the world's largest telecom operator by subscribers, reported modest growth in 2010 despite cutthroat competition.

The company raked in a net profit of 119.64 billion yuan ($18.4 billion) last year, representing a modest growth of 3.9 percent year on year, up from 2.3 percent in 2009.

Revenues grew 7.3 percent to 485.2 billion yuan ($74.6 billion) as the company added 61.73 million new customers, bringing the total customer base to 584 million. Its 3G users totaled 20.7 million at the end of 2010, an increase of 17.29 million from a year ago.

The telecom behemoth has been gradually losing market shares to smaller rivals since late 2008 when China reorganized the sector and allowed China Telecom into the wireless market.

In December 2008, China Mobile signed up nine out of 10 new mobile users in the country. But the share dived to around 55 percent in October 2010. Meanwhile, subscribers are paying less as more than half of its new customers came from the relatively underdeveloped countryside. The average revenue per user—a key barometer for long-term growth prospects—slipped to 73 yuan ($11.2), dropping from 77 yuan ($11.8) a year earlier.

The company said it will continue pushing mobile Internet businesses, which accounted for one third of its revenues in 2010.

It will also make forays into distribution and retail sales of smart phones to solidify its customer base, said the company.

Offloading U.S. Assets

The U.S. Treasury Department said China trimmed its holdings of U.S. Treasury securities in January 2011 for the third consecutive month by $5.4 billion. China retained its position as the largest foreign holder of the U.S. Treasury securities with $1.1547 trillion in its portfolio.

Meanwhile, the second largest foreign holder Japan continued its net buying, boosting its holdings to $885.9 billion from $882.3 billion last December. Total holdings of Treasury securities by all foreign countries amounted to $4.45 trillion at the end of January.

It remains to be seen how the earthquake and tsunami in Japan will impact the capital flow, but there are widespread reports of repatriation of funds to help Japan shore up as it recovers from the disaster.

The securities are important for the United States to fund its massive budget deficits that hit a record high of $222.5 billion in February.