CHINA S Minister of Commerce Chen Deming on Sunday urged foreign governments to improve their investment environment and provide equal access for Chinese investors, domestic media reported.
The Central Government will encourage Chinese businesses to expand globally over the next five years while working to attract more foreign investment, Chen told business leaders at the China Development Forum, Xinhua News Agency said.
In 2010, China s outbound direct investment hit US$59 billion, which equals to 60 percent of the foreign direct investment in China. In the next five to 10 years, China will gradually strike a balance on the capital flow, he said.
China s investment abroad in non-financial sectors hit a record in 2010, rising 36.3 percent year on year, as the country pumped more money into overseas energy, mining and agricultural projects.
However, recent obstacles encountered by Chinese firms when trying to invest in the U.S. steel, manufacturing and telecom sectors has prompted calls from the Chinese Government for even greater access to foreign markets.
Chen promised transparency and fairness in its policies toward foreign companies, Xinhua said.
China always welcomes foreign investment to play a constructive role in its development and share its prosperity, he said.
Chen also said some incentives, such as tax breaks for foreign companies, were recently eliminated to create a level playing field for all companies.
Foreign direct investment in China also hit a full-year record of US$105.7 billion in 2010, up 17.4 percent year on year, with more than a fifth of the money flowing into the booming real estate sector.
Chen said China is willing to improve the trade structure through negotiations with countries which have large deficit with it and he hopes they could loose export control.
Chen said many Chinese enterprises are in need of advanced technology and equipment, resources and raw materials as they are transforming growth pattern. However, some countries are imposing restrictions on such exports to China.
He said China s foreign trade is steering toward a more balanced direction. Its trade surplus has dropped for two consecutive years. Last year s surplus accounted for only 3.1 percent of China s GDP.
In the first two months of this year, China posted a trade deficit of US$890 million, according to the General Administration of Customs (GAC).
Chen predicted the proportion of surplus in GDP would further drop this year.
China s imports have been a significant driving force for global economic growth and have contributed substantially to relieving the imbalances of global trade, he said.
Last year, China s imports from the United States, European Union and Japan climbed 32.6 percent, 30.2 percent and 36.6 percent respectively from 2009.
China has already been running deficits with ASEAN countries, Japan, South Korea, as well as African and South American countries.
According to the GAC, around 99 percent of China s trade surplus in 2010 came from the United States.
Chen said China will continue to boost imports from the least developed countries, major trade partners and major sources of its trade surplus.(SD-Agencies)
