A senior official from the State Development and Reform Commission (SDRC) said here Thursday west China would create a better business environment for overseas investors.

Though foreign direct investment (FDI) flowing into west China now accounts for a mere 4 percent of the country's total, Li Zibin,vice-minister in charge of the SDRC, China's economic policy maker, expressed his optimism about the future of the FDI in western regions.

He told a press conference held by the Information Office of the State Council that west China is rich in energy, tourism and mineral resources and its transport and telecommunications conditions are improving.

"These will give investors good returns and create a 'win-win' situation," he said.

China posted an increase of 18 percent in combined FDI in the year through August. Li said the FDI figure was expected to reach 60 billion US dollars in 2004.

The country has been allocating a majority of loans from foreign governments and international financial organizations to the development of its poor but vast western part, according to Li.