(Yicai Global) July 26 -- The overall pace of foreign investment in China has not slowed, a government official said in response to recent rumors that foreign enterprises are pulling out of the country.

Some foreign companies are pursuing a diversified layout, Yao Jun, deputy director of the Ministry of Industry and Information Technology’s planning department, said at a press conference in Beijing today. The relocation of manufacturing and transfer of industrial chains are normal economic phenomena, he added.

In the first five months of this year, actual use of foreign capital in China jumped 17.3 percent from a year earlier to CNY564.2 billion (USD83.5 billion), Yao pointed out, with many well-known multinationals having hiked investment in the country’s low-carbon field.

Manufacturing is a key area for foreign investment. More overseas capital is being invested in advanced manufacturing, high-tech, energy-saving and environmental protection. From January to May, actual use of foreign capital in the high-tech manufacturing field surged by a third from a year ago, Yao noted.

Yao also alluded to reports by the German Chamber of Commerce in China and the American Chamber of Commerce in China that more than 70 percent of German companies and over 60 percent of US firms plan to boost investment in China.

The government will further support foreigners to invest more in China, and encourage Chinese businesses to raise the level of international cooperation, Yao said. China will also build more communications platforms for manufacturing by improving dialogue mechanisms with countries and authorities, he added.

Editors: Shi Yi, Peter Thomas