Shanghai has ranked as the "most attractive" city for foreign residents for the fifth consecutive year due to its international atmosphere and multicultural environment, according to an annual survey.

Qingdao scored much higher than Shanghai and Beijing in terms of air pollution and traffic congestion, as did Suzhou, a picturesque city in Jiangsu province, which placed seventh.

This year's survey also showed China's rapid economic growth and its future development potential are major draws for foreigners with a long-term plans to work or live in the country.

More than half of all respondents said the environment was the most important factor when considering staying long term, while preferential policies also were a major concern.

Loic Bastard, a Frenchman who works for Envision Energy and has been based in Wuxi, another city in Jiangsu, for two years, said he enjoys living in his "clean" and "beautiful" adopted home.

"With easy transportation, good infrastructure and a good environment, smaller cities have gained more competitiveness compared with metropolises," he said. "With an increasing number of preferential policies from the local government, I think second- and third-tier cities will be attractive to more foreign expats."