To cope with intensifying competition with China amid a prolonged economic slump at home, Japan should actively woo foreign direct investment and become more efficient, according to the White Paper on International Trade 2001 released Friday.

The annual report, submitted to the Cabinet by the Economy, Trade and Industry Ministry, does not touch directly on Japan's import curbs on some Chinese products, but it warns against the indiscriminate use of antidumping measures.

China's emergence as a manufacturing center has moved East Asia into an era of intensified competition, according to the annual report.