Some western commentators say China's foreign direct investment climate has worsened. But experts and entrepreneurs attending the on-going 5th Pan-Beibu Gulf (PBG) Economic Cooperation Forum disagreed.

China is a better destination because of China's advantages, including its stable policies and continuous economic growth, said Wei Jianguo, secretary-general of the China Center for International Economic Exchanges (CCIEE) at the forum held in the capital city of south China's Guangxi Zhuang Autonomous Region.

Compared to some other developing countries, China's logistics network is relatively developed, Wei said, adding that some foreign entrepreneurs who moved their factories out of China after Chinese labor costs increased have returned to China.

The secretary-general also said China has advantages in terms of production chains and infrastructure.

Concerning problems arising from FDI in China, Wei said they should be solved through dialogue.

Wang Wei, head of the Wal-Mart China's general affairs department, said Wal-Mart lowered its costs thanks to a Chinese government-initiated program to link farmers' products and supermarkets directly.

"Enterprises alone don't work. You need infrastructure. If you don't have good infrastructure, industrial development doesn't work," said Edward Clarence-Smith, representative and head of the United Nations Industrial Development Organization (UNIDO) Regional Office.

For many Fortune 500 companies, the question is not whether to invest in China - the question is how, Wei said.

Sun Dan, vice president of Honeywell China, said the company is hoping to invest in China's new energy industry.

"Honeywell would like to play a big role in environmentally friendly projects in Guangxi given its preferential policies," Sun said.

With the start of the China-Association of Southeast Asian Nations (ASEAN) Free Trade Area (CAFTA) on January 1, more than 90 percent of China-ASEAN trade became tariff-free.