Foreign Direct Investment (FDI) in China rose 29 percent year-on-year in July to hit $6.92 billion, data showed on Tuesday.

The country has witnessed unseemly spectacles of labor unrest in recent months, fueling fears that famed Chinese cheap labor is drying up and manufacturers will have a tough time keeping costs low.

However, the relentless rise in fund flows into China shows foreign firms are still upbeat on the country.

While China's blistering growth is attracting huge fund inflows, the July figures were not as upbeat as figures for the month of June when FDI had posted a 39.6 percent growth.

Yao Jian, spokesman of the Ministry of Commerce said on Tuesday, on a month-on-month basis, FDI inflows had increased by more than 20 percent for two straight months, reflecting the solid recovery in FDI flows into China.

The funds may have continued to flow due to a move in April by China's State Council gave local authorities the power to approve foreign projects worth up to $300 million, compared to the previous cap of $100 million.

The manufacturing sector received 47.94 percent of the July FDI inflow and the services industry got 45.09 percent.

A total of 14,459 foreign-invested companied were approved for establishment in China during the first seven months of the year, up 17.9 percent year on year, Yao said.

In May, China attracted $8.13 billion worth of FDI, a rise of 27.48 percent year-on-year, making the five-month tally to $38.92 billion.