China is not competing for world resources through overseas cooperation but is merely trying to promote mutual development, a Ministry of Commerce (MOFCOM) official said Tuesday.

 

Chen Jian, assistant minister of commerce, said concerns that China is competing for world resources are incorrect, despite the country's increasing investment in overseas resources.

 

"China's overseas cooperation in the resources sector is to promote mutual development through market sharing," Chen said at a press conference held by the State Council Information Office.

 

He said overseas cooperation in this area started with China's helping Tanzania to exploit mineral resources such as coal and copper in the 1950s and 60s.

 

Such cooperation helps partners with technology transfer, and the development of potential resource supplies, Chen added.

 

Although China's rapid economic growth has resulted in an increase in the consumption of resources, it will continue to rely mainly on domestic supplies, Chen said.

 

Chen added that there was no reason to say China's rising energy demands would arouse international conflict.

 

He added that, on the basis of equality and mutual benefits, China will further cooperate with other countries to establish a fair, new economic order, including one for energy cooperation.

 

When promoting overseas economic cooperation, China will keep its preferential policies for foreign-funded enterprises unchanged in a bid to attract foreign investment. Chen said this was in line with international regulations.

 

"Preferential policies for foreign-invested enterprises do not violate World Trade Organization rules," he said.

 

(China Daily July 13, 2005)