For investors across the globe, China remains a favorite destination.

The country received a record $105.74 billion in foreign direct investment (FDI) in 2010 into its non-financial sectors, rising 17.4 percent from the previous year, said the Ministry of Commerce (MOFCOM). A total of 27,406 foreign-funded enterprises were approved last year, up 16.9 percent year on year.

Meanwhile, the structure of the FDI continues to improve. The central and western regions accounted for 15 percent of FDI inflows last year, up 1.2 percentage points from a year earlier. In addition, 46.1 percent of the foreign capital went to the service sector, compared with 42.1 percent in 2009.

China is continuously optimizing its investment environment, enhancing appeal to foreign investors, said the ministry.

In April 2010, the State Council issued a string of new rules, allowing local governments a larger say in approving FDI projects and encouraging foreign capital into hi-tech, modern service, and new energy industries.

The American Chamber of Commerce in Shanghai said in a recent report 87 percent of U.S. companies in China reported revenue growth last year, surging from 47 percent in 2009.

Finding enough qualified staff was the biggest business challenge, and competition is picking up not only between U.S. and other foreign companies but between U.S. and Chinese companies.

Optimism regarding the China market continued. About nine out of 10 U.S. companies in China forecast a revenue increase for 2011, said the report.