Foreign direct investment (FDI) flows to China rose by 34.2 percent year on year to $26.07 billion in January and February, excluding banking, securities, and insurance sectors, data from the Ministry of Commerce (MOFCOM) showed on Friday.

Foreign investment in the services industry accounted for 80.2 percent of the country's total FDI, among which, wholesale and retail trade sectors saw FDI climbed by 54.1 percent year on year during the period, and the accommodation and catering industries registered a 45.6-percent jump.

In terms of source, investment from countries along the Belt and Road Initiative and Association of Southeast Asian Nations increased by 26.2 percent and 28.1 percent, respectively, and investment from the European Union raised by a year-on-year 31.5 percent.

China has been widening market access for foreign investment. The country further reduced the number of sectors and industries off-limits to both Chinese and overseas investors last December. The number of items on the list was cut to 123.

China has also modified a list of industries in which it will seek to encourage foreign investment, adding 127 new items. The list came into effect in January. Foreign investment in industries among the catalog qualifies for preferential policies such as reduced taxes.

China became the world's top recipient of investment flows in 2020, data from the United Nations Conference on Trade and Development (UNCTAD) showed. FDI flows to China rose by 4 percent to $163 billion, compared with $134 billion recorded in the United States, according to UNCTAD's Investment Trends Monitor.