Beijing is locked in a dispute with US Internet giant Google which has threatened to pull out of the Chinese market over cyberattacks and Web censorship in China.

"We are always very happy to welcome foreign firms (in China), including Internet firms," Yang told a joint press conference with his French counterpart Bernard Kouchner on a visit to Paris.

"We will continue to provide them with a suitable environment for their business. But at the same time, they must take into account China's realities and cultural tradition."

"The Internet in China is completely open and China is one of the most dynamic markets in the field of Internet," added Yang, visiting Paris Wednesday.

But he said foreign firms operating in China must do so while respecting "the law and the interests of the Chinese people."

The Chinese government has denied any responsibility for the cyber attacks and Yang said that China wanted to cooperate with the outside world in fighting such attacks.

"In fact China is the victim of attacks from hackers and we are in favour of cooperation to fight it together," he said.

Prior to Yang's visit, Kouchner said he would ask for an explanation from his Chinese counterpart on Beijing's dispute with Google, describing reports about Internet surveillance as "quite troubling."

Google said last month that following cyberattacks on the Gmail accounts of Chinese human rights activists it was no longer willing to censor Web search results in China even it that means it has to leave the country.