China planned to suspend some foreign investment laws. This was in accordance with the new free trade zones that would include Shanghai. The move was part of Li Keqiang's drive to open up communist China to foreign investment for the country to sustain its economic growth.

The changes made in the country's foreign investment legislation would create innovative ways to open up China's economy. The move would also take away of unnecessary administration and aid in the transformation of the state's role in the economy. This was according to a State Council statement, led by Li, released last August 16.

Last year, China's foreign direct investment slumped to USD111.7 billion from its 2011 record of USD116 billion.

China is increasing its efforts to attract foreign investment after it experienced a decrease by 3.7 percent last year. The foreign investment slump was the country's first since the global financial crisis.

In a phone interview, Kent Kedl, managing director for risk consulting firm Control Risks, said that the China know how important foreign investments are.  By initiating the move, the country will attract strategic and financial investors, he added.