Ministry clarifies media brand critique

The European Union Chamber of Commerce in China also called on the Chinese government in September to reduce restrictions on market access and open more sectors to private as well as foreign investors.

"On the whole, global investors are still retaining strong confidence on investment in China… and Chinese markets continue to lure international investors," Shen said while noting the report from the United Nations Conference on Trade and Development, which put China as the top investment destination during the 2012-2014 period, and the 2013 A.T. Kearney Foreign Direct Investment Confidence Index which ranked China in second position, just after the United States.

In the first nine months of this year, foreign direct investment in China maintained growth after reversing a decreasing trend in February. The FDI inflow rose 6.22 percent from a year earlier in the January-September period but the number of newly approved foreign-invested enterprises went down 9.29 percent year-on-year in the same period, suggesting slowing investment inflow by multinational companies in the future.

"The media criticisms and the authority's investigations, which are minor details for global investors in deciding investment destinations, will not affect foreign investors' confidence and future FDI inflow," said Zhuang Rui, deputy dean of the Institute of International Economy at the University of International Business and Economics in Beijing.

China's market size, industrial potential as well as its improving investment environment are the top magnets to global investors, Zhuang added.

Shen said that the new leadership has made great progress in optimizing the investment environment. Investment approvals were simplified and the newly established free trade zone in Shanghai are piloting innovations in FDI management and expanding the sectors for foreign investment.