Xu Ming, vice-director of the Foreign Economic Coordination Department with the State Economic and Trade Commission, said at the Symposium on Opening Up Commodities Circulation during the fair that foreign investment in commercial sectors will help accelerate the modernization of internal trade and boost domestic production and consumption.

China will allow more foreign mergers and share-holding companies in the commodities circulation sector, especially in the wholesale area, and select some well-performing large and medium-sized state-owned companies to be listed abroad.

By the end of the first half of the year, the number and the amount of foreign-funded projects in China's commercial sector accounted for only 0.1 percent and one percent, respectively, of the total number of foreign-funded projects and total amount of foreign investment.

At the initial stage, foreign investment has been directed into setting up department stores, shopping malls, supermarkets and warehouse shopping malls, the official said.

However, some cities have seen duplicated construction of shopping stores and warehouse stores, while middle-sized supermarkets and grocery stores in cities are much needed, Xu said.

China will improve the overall planning of urban commercial development and the utilization of foreign investment in the sector, and guide foreign investment, the official added.

China has registered 356 foreign-funded companies in the commercial area since 1992, assimilating more than US$3 billion of foreign direct investment. Their sales revenues reached 52.6 billion yuan (US$6.34 billion) last year. So far, half of the world's Top 50 retailers have set up businesses in China.

(Xinhua News Agency 09/11/2001)