XI'AN — Premier Wen Jiabao reassured foreign business leaders on Saturday that China's investment climate was stable and said Beijing would not block the export of rare metals needed to manufacture computers and mobile phones.

He made the comments while meeting German Chancellor Angela Merkel and business leaders from the two countries in Xi'an, capital of Northwest China's Shaanxi province.

"There is an allegation that China's investment environment is worsening. I think it is untrue," Wen said in response to a question from Juergen Hambrecht, chief executive of the German chemical company BASF.

The World Bank gave China a low investment environment ranking in a July report.

Wen said foreign investment does not pour into a country where the investment environment is deteriorating, citing Ministry of Commerce data that showed foreign investment in China in the first half of 2010 rose 19.6 percent year on year.

Wen said China welcomes investment from companies that meet its industry policies. The government will ensure such companies have access to the Chinese market, he added.

"Those that have entered China all enjoy national treatment, as do Chinese companies, whether they are a foreign-funded company, a joint venture or a joint stock company," Wen said.

The premier also promised China would never block the export of rare earth minerals, but said the minerals should be exported for a reasonable price and at a reasonable volume.

China supplies about 90 percent of the world's rare earth minerals.

The meeting came after China and Germany signed 10 agreements in Beijing on Friday. The deals involved green energy, culture and a joint venture to manufacture trucks.