Irregularities need to be probed for a sound market and foreign companies should abide by rules and regulations, said Zhao.

Further reform and opening-up policies will be implemented in the country. From June 17, the approval process for foreign companies planning to invest in China will be relaxed, while strengthening national security reviews.

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Security reviews are common for all countries and investment may be refused due to security concerns, said Zhou Mi, a researcher with the Chinese Academy of International Trade and Economic Cooperation.

"In the past, China did not realize the security problem due to its economic development levels and a heavy dependence on foreign technologies and products," said Jin Baisong, another researcher with the academy.

"For example, in the past we wouldn't have known what to use if there hadn't been Windows. But now we have our own software," he said.

The administration of foreign investment should be more mature and have a comprehensive legal system, said Zhou.

For example, a law should be drafted which combines attracting foreign investment with safeguarding national security and anti-monopoly, for a better guided, routine and legal administration of such investment, suggested Zhou.

"We expect foreign investment policies to be more transparent, clear and standardized," said Yang.