China, which overtook the United States as the top global destination for foreign direct investment in 2003, is expected to attract a record inflow of over $60 billion this year, a senior official said.

The actual FDI in China during the first eight months of this year totalled $43.559 billion, up 18.77 per cent from last year, Vice-Minister of Commerce, Liao Xiaoqi said.

According to the estimate by an official with the department of overseas investment of the ministry, the figure for the whole year will exceed $60 billion if the inflow of overseas investment continues at the same speed.

China's strong manufacturing industry helped the country attract FDI last year worth $53.5 billion, compared with $52.7 billion in 2002, the United Nations Conference on Trade and Development said in its annual report on investment flows.

Foreign investment in the United States, traditionally the largest recipient of such money, plunged by 53 per cent last year to reach $30 billion, the lowest level in 12 years, according to data from UNCTAD's World Investment Report 2004.

Addressing the opening ceremony at the World Investment Report 2004 by the UNCTAD here yesterday, Liao said the macro-economic measures China has taken to regulate its economy will not hinder foreign investment in the country but will ensure the economy grows in a sustainable manner.

The healthy growth of Chinese economy means bigger opportunities for overseas investors, he said.

Overseas firms in China accounted for 55 per cent of China's total exports in 2003, one-third of the country's output value in the manufacturing sector, and one-fifth of the country's tax revenues, according to official statistics.

According to figures released by Chinese ministry of commerce last week, there have been 4,94,025 foreign-funded companies set up in China with a total contracted FDI of more than $1 trillion.

The total actual FDI reached $545.029 billion, covering about 10 per cent of China's total asset investment. The volume of export and import by foreign-funded enterprises accounted for more than half of the total, according to the ministry.