Vice president calls on Chinese firms to boost foreign investment

Chinese Vice President Xi Jinping delivers a keynote speech during the opening ceremony and world leaders investment summit of the 2nd World Investment Forum, which is sponsored by the United Nations Conference on Trade and Development (UNCTAD), in the coastal city of Xiamen, southeast China's Fujian Province, Sept. 7, 2010. (Xinhua/Lan Hongguang)
Vice President Xi Jinping Tuesday encouraged Chinese companies to expand overseas investment as the country became the fifth largest global investor.

"We are stepping up efforts to boost various forms of overseas investment cooperation and develop our own multinational companies," Xi said at the opening of the Second World Investment Forum, sponsored by the United Nations Conference on Trade and Development (UNCTAD).

China ranks as the fifth largest global investor in outbound direct investment (ODI) with a total volume of 56.5 billion U.S. dollars, figures released Sunday by the Ministry of Commerce showed.

"In recent years, China has worked in line with the different stages of opening-up... and adopted new ways of conducting overseas investment and cooperation," Xi said.

The country had supported its enterprises in developing international operations in research and development, production and distribution.

Xi said China was working to support top enterprises to establish international networks for sales distribution.

As of 2009, Chinese companies had set up 13,000 overseas enterprises with overall assets exceeding 1 trillion U.S. dollars.

The country's enterprises had made investments worth 245.7 billion U.S. dollars in 177 countries and regions by the end of last year.

Xi said China, while striving to build an open economy, had been helping developing countries enhance their capacity for independent development, improve living standards and narrow the gap with developed countries.

In September last year, China agreed to buy the first bonds issued by the International Monetary Fund for 50 billion U.S. dollars.

The move is said to have offered a safe investment instrument while boosting the fund's capacity to help member states weather the global financial crisis and help an early recovery of the global economy.

Xi said China requested the fund give priority to the most undeveloped countries when using the money.

"In future, we will encourage more Chinese enterprises to go aboard, deepen South-South Cooperation and truly help developing countries raise economic development capacity," Xi said.

With the theme "Investment for Sustainable Development," the three-day forum will focus on the challenges and opportunities for global investment in a post-crisis economy and seek insights into the balance between investment and sustainable development.

Source: Xinhua