Trade in services set to boom by 2010

(China Daily)
Updated: 2006-10-12 09:29

China posted a record trade surplus of US$94.66 billion in the first eight months of the year.

Acknowledging the problems resulting from the current trade imbalance, the central government has pledged to correct it by slowing down export growth in labour and energy-intensive products and restricting processing trade exports.

Meanwhile, the authorities are keen to attract more foreign direct investment between 2006 and 2010, with foreign investment's efficiency improved and its innovative capacity boosted.

"Foreign investors are expected to invest more in key sectors such as infrastructure, agriculture, technology and services. Central, western and northeastern China are expected to attract more foreign investment in the next five years," the plan said.

The ministry also set a target of US$60 billion for outbound investment over the period.

China's total outward investment currently accounts for just 0.59 per cent of the global total.

During the next five years the government will support domestic enterprises in setting up factories and plants in foreign markets by establishing some overseas "economic and trade co-operation zones" with complete infrastructure and industrial chains.

"Enterprises are encouraged to build research and development centres and invest in technology-intensive countries and regions," the official said.

Meanwhile, the target for the country's retail sales is around 11 per cent annual growth over the next five years, to level off with the growth rate in the 10th Five-Year Plan (2001-05) period.