China has demonstrated great vitality in the past two decades of reform and opening up, Shi said while addressing the ongoing CEO forum of the Second APEC Investment Mart.

China ranked the world's seventh largest economic giant in year 2000 with its gross domestic product (GDP) exceeding US$1 trillion. It became the world's seventh largest trader with its trade volume hitting US$474.3 billion. Meanwhile, the country has remained the largest recipient of overseas investment among the developing nations for eight consecutive years.

In the coming five to ten years, China will continue to adopt an active, rational and effective policy to attract overseas investment, optimize investment environment and absorb investment by means of purchases, merging, investment fund and securities, Shi said.

In the meantime, the country will open more sectors and more areas, including the service trade such as banking, insurance, telecommunications, trade and tourism, as well as its central and western regions, he added.

Shi predicts that China's economy will grow at seven percent annually, so that by year 2005, the country's GDP is expected to reach US$12.5 trillion. "China's development will for sure provide immense opportunities for the business circles of all the countries in the world," he said.

Shi estimated that China's import of equipment, technologies and products from 2001 to 2005 would add up to some US$1.4 trillion.

China, facing the forthcoming WTO entry, has straightened out its existing foreign economic laws and made necessary revisions and supplements to meet the WTO rules and the socialist market economy, Shi said.

The National People's Congress, China's legislative body, and its standing committee, have passed the newly-amended laws on overseas-invested enterprises, he added.

Shi pointed out that China's WTO entry will enable domestic and overseas enterprises to conduct open and fair competitions and will provide more market access opportunities for the overseas enterprises.

On the other hand, China's WTO entry will further accelerate the country's opening up, he added.

Shi noted that since the second half of 2000, the world economy has experienced sluggish growth and has entered a period for significant readjustment, which may lead to less and more cautious transnational investment deals.

However, Shi said, the stable new market may be a focal point of investment. A US survey showed that FDI (foreign direct investment) confidence index towards the Chinese market is 1.69, the second highest in the world.

He stressed that China's rapid economic growth and political stability have created preconditions for attracting more overseas investment to the country. Perfection of China's socialist market economic system as well as laws and regulations has optimized the investment environment in China.

On the other hand, Shi said, China is stepping up with efforts for human resources development through the training of a large group of professionals in international economy, law and trade.

China will provide more preferential policies to encourage overseas entrepreneurs to invest in the high-tech sector and set up research and development centers in China, Shi said.

The minister noted that the theme of the mart, "invest in Asia- Pacific, invest in the future", has profound significance, as the vitality showed in the Asia-Pacific region forecasts its great prospects for future development.

(xinhua 06/10/2001)