Economy, ODI and Currency Bring Opportunities

China's economy, the bid to go global by domestic enterprises and cross-border business using the renminbi were topics of discussion during a forum yesterday at the ongoing World Chinese Entrepreneurs Convention in Chengdu.

Officials said the nation's stably growing economy, more policy support for outbound investment in the future and the convenience in using China's currency in cross-border transactions will offer entrepreneurs even greater opportunities.

Zhang Xiaoqiang, vice-minister of the National Development and Reform Commission, focused on the outlook for the economy.

"We are very confident that this year we will be able to realize the set goal of economic and social development. We will sustain 7.5 percent growth in GDP and commodity prices will generally maintain stable," said Zhang.

In the first half of 2013, China's GDP increased 7.6 percent from the same period in 2012, mainly on the strength of expanding domestic demand, he said.

For the first eight months, total sales of consumer goods grew 12.8 percent from a year earlier. After adjusting for inflation, the actual growth rate was11.4 percent, he said.

Li Jinzao, vice-minister of commerce, predicted outbound investment from China will reach US$500 billion in five years.

In 2012, outbound direct investment from China hit US$87.8 billion, bringing the cumulative total to US$500 billion, according to Li.

Some 16,000 Chinese companies, both State-owned and private, have invested overseas, but Li warned the effort is still weak. China ranked just 13th on the list of global outbound investment sources last year.

He vowed that China will further promote the strategy of going global to aid in economic development.

Xing Yujing, secretary-general of the central bank's monetary policy committee, said China first began trials in cross-border use of the Chinese currency in 2009.

After five years of development, there is more space for cooperation between central banks in using renminbi cross-border settlement, which will facilitate investment and trade help in the nation's financial reforms, Xing said.

It is now also used as a reserve currency in some countries, he added.