In a business confidence survey released by the European Union Chamber of Commerce in China and Roland Berger Strategy Consultants last week, 86 percent of companies surveyed said they are considering further investment to expand operations in China, while 41 percent are planning merger and acquisition deals this year.

More than half of European companies are planning to expand business from first-tier cities to second- and third-tier cities in China, with interest growing in the western region.

The survey found that Sichuan tops the list of destinations the companies are shifting their focus to, followed by Guangdong and Chongqing.

Davide Cucino, president of the chamber, said western China is a growing attraction for European companies, although coastal areas still remain key markets.

By the end of the first quarter, 191 Fortune 500 companies had entered Sichuan, bringing direct investment worth more than $10 billion, according to the department of commerce in Sichuan province.