An improved investment environment is luring US investors to China's second- and third-tier regions, according to the 2007 White Paper released yesterday.

"The investment climate of the second- and third-tier regions has improved, and represents an opportunity for US firms seeking to build domestic market share," said the report, released by the AmCham.

It attributed US investors' interest in second-tier markets to the increasing demand created by urbanization and improved infrastructure and logistics in new inland cities. Two-thirds of AmCham members surveyed said they wanted to increase market reach, when asked why they were expanding beyond the main commercial centers.