China will gradually loosen restrictions on foreign investment in the country's service sector, state media reported. National Development and Reform Commission vice chairman Zhang Mao said at a multinational CEO roundtable that investment would be allowed to enter high-tech, equipment and new material manufacturing and logistics businesses as a means of absorbing advanced technology and management skills from foreign firms. He added that foreign firms would still not be allowed to start export-only businesses in the service sector and would be held to energy conservation standards. Chinese authorities will encourage investment by simplifying examination and approval procedures and increasing free exchange of renminbi in its capital account.