FDI into the service sector last year continued to exceed that into manufacturing, demonstrating the optimization of China's industrial structure, Shen said.

Foreign investment into China's service industry dropped 2.6 percent last year to $53.84 billion, representing 48.2 percent of the total FDI.

Investment into the manufacturing sector retreated 6.2 percent to $48.87 billion, accounting for 43.7 percent of the total, the ministry said.

China's central regions saw FDI inflow climbing 18.5 percent year-on-year, while investment in its western and eastern regions dropped by 14.3 percent and 4.2 percent, respectively.

The country approved the establishment of 24,925 new foreign-funded companies last year, down 10.1 percent from a year ago, according to the ministry.

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