BEIJING, December 25: The mouthpiece of China's ruling Communist Party on Thursday called for greater efforts to attract foreign investment, shrugging off criticism from die-hard marxists who are opposed to the country opening up.

The official People's Daily said in an editorial China ``cannot do without foreign investment if the pace of its modernisation is to be accelerated.''

China's leaders ended a three-day, closed-door national conference on foreign investment in Beijing this week and called for greater efforts to attract foreign investment, basically rejecting criticism from die-hard marxists.

State media have in recent months carried articles by leftists who are opposed to China opening its doors to foreign investment lest foreign ideas creep in and shake the people's belief in communism.

The editorial defended foreign investment, saying it has resolved China's lack of funds, transferred technology, spurred economic growth, trained personnel, created jobs, boosted tax collection, trade and the country's foreign exchange reserves.

China has attracted $220 billion in foreign direct investment since the country began opening up to the outside world in 1979.

``Foreign investment has fuelled the sustained, rapid and sound development of the nation's economy and improved social stability,'' the Xinhua news agency quoted foreign trade minister Wu Yi as telling the conference.

Foreign-funded enterprises in China employ more than 17.5 million people, accounting for 10 per cent of the country's non-rural labour force, Wu said.

But the newspaper complained of duplicate foreign investment, rising disputes between foreign investors and workers, lack of investment in high technology and other problems.

The editorial also warned of excessive competition.``We must pay attention to protecting ourselves and avoid excessive competition,'' it said. ``We must strengthen supervision of foreign-funded enterprises and protect the legal rights of the Chinese side.''

Foreign investors should be encouraged to pour funds into backward regions in central and western China, the editorial said.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.