Stressed ties 'don't hurt' investment flows

Shen noted that China retains comprehensive advantages for global investment owing to an expanding market, the opening of more industries and the improvement of the investment environment.

"The fast expansion of FDI in the services sector is a trend and probably won't be reversed ... the ministry is drafting a very important document to boost trade in services and the service sectors," he said.

Shen said that China's foreign trade is likely to continue improving for the rest of this year.

"China's exports have shown a tendency to improve. For the rest of this year, favorable conditions far exceed unfavorable ones and trade will probably keep warming up," Shen said. "But the task remains arduous to reach the annual growth target."

Total trade in dollar terms edged up 0.2 percent in the January-May period, far below the 7.5 percent target. Foreign trade in May rose 3 percent, with exports up 7 percent (compared with 0.9 percent in April) and imports down 1.6 percent.

Shen said that better external conditions and supportive government policies will favor China's foreign trade. The weakening advantages of exporters and sluggish domestic demand remain as major challenges.

The State Council, China's cabinet, issued a circular on Tuesday that aims to enhance government departments' compliance work in making trade policies.

Central and local governments in China must work in accord with the regulations of the World Trade Organization and other related regulations when determining foreign trade policies, it said.

China's FDI inflows down 6.7% in May	Top 10 most attractive FDI destinations in the world