Shi Guangsheng, minister of foreign trade and economic cooperation (MOFTEC), set a goal of 7 per cent growth for China's total foreign trade volume next year.

Exports of machinery and electronic products should grow 10 percent year-on-year and those of high technology products are expected to surge by 20 percent.

Shi made the predications at a three-day national conference on foreign trade and economic co-operation, which started yesterday in Beijing.

Senior trade officials from central, provincial and municipal governments assessed the rapid development of China's foreign trade in the past five years and discussed difficulties and tasks for the coming year.

A number of factors will benefit China's foreign trade growth next year, including a rebound in international demand, a transfer of manufacturing industry to China and the positive effects of China's entry to the World Trade Organization. But Shi urged trade officials to watch out for an unstable global economic recovery, a continued fall in international investment and reviving international trade protectionism.

Uncertainties over a possible United States-led war against Iraq and its influence on the world economy and international oil prices would also have an impact.

He noted the importance of maintaining the continuity and stability of China's trade-supportive policies in boosting exports.

While opening the service sector wider to foreign investors, China will explore new ways of attracting foreign investment, including mergers and acquisitions and foreign investors' participation in the disposal of non-performing assets, he said.

The minister promised more policy support for China's poverty-stricken western regions to enable them to step up their export growth, use foreign direct investment and co-operate with eastern parts of the country.

He said MOFTEC is busy drafting a series of laws and rules on contracting overseas projects and labour service exports.

It is also seeking to introduce regulations promoting information development of foreign trade, reform of State foreign trade firms and the establishment of intermediary organizations to improve its supervision of China's foreign trade.

(China Daily December 24, 2002)