China's western regions actually used US$1.393 billion foreign investment in the first two months this year, more than twice of the same period last year, according to sources.

The increase was 128% over the country's average in the period. A total of 254 foreign companies got the approval to invest in the region, according to Ji Xiaofeng, a ministry official in charge of foreign investment management.

Ji said the increase was due to China's encouraging policy for foreign investment in the middle and western regions, and the ministry was advocating a transfer of foreign investment from the eastern regions to the western areas, and encouraging local governments to use the investment in an innovative way.

Presently, a quarter of China's tax revenue was generated from foreign-invested companies. A total of 637,000 foreign companies had invested in China by the end of February, according to statistics, and the actual use of foreign investment amounted to US$781.1 billion.