CHINA will take "active measures" to improve the environment for foreign investment when overseas funds continued to flow into the country, said a senior government official.

"As a developing country, there are certainly some problems existing in China's environment for foreign investment," said Liu Yajun, director of the Department of Foreign Investment Administration under the Ministry of Commerce.

"I hope to stress Chinese government is always facing up to these problems and is taking active measures to improve the overall environment," Liu said in Beijing at a press conference.

Some foreign investors were complaining about much fiercer competition in the Chinese market recently and they demanded for fair treatment the same as for domestic companies.

Liu said more competition was a sign of China's dynamic economy and it showed the Chinese market was open to all players.

He added Chinese government will keep the channel of communication with foreign investors smooth and respect the law and rules to protect their rights.

China's foreign direct investment in non-financial sectors jumped 39.6 percent from a year earlier to US$12.5 billion, up from the increase of 27.48 percent in May, according to the Ministry of Commerce.

It was 11th month of growth since last August when the global economy was disrupted by the financial crisis.