China has set an example for developing countries in making use of foreign direct investment, said Supachai Panitchpakdi, Secretary-General of the United Nations Conference on Trade and Development.

Supachai is attending the tenth China International Fair for Investment and Trade which opens Friday in Xiamen, in east China's Fujian Province.

Policies on foreign direct investment (FDI) should not stress the amount of investment but should emphasize the quality, said Supachai, adding that China has become more selective in its foreign investment which is now focusing on technology.

In the past years, economists believed that reform and less control would bring economic growth and reduce poverty. But facts proved that merely relying on market mechanism or government intervention would not guarantee economic success, said Supachai.

Supachai praised China's implementation of its commitments to the World Trade Organization. China is not only an example of attracting foreign investment but also that of increasing investment abroad, said the official.

Supachai also said China has used macroeconomic instruments to maintain economic stability.

Source: Xinhua