China Economy Weekly: "Open to Foreign Firms" and Imports, Agreement with Taiwan, Inflation at 22-Month High

China "Open to Foreign Firms": Vice President Xi Jinping has said that China is taking vigorous steps to create a more open, optimal environment for foreign enterprises.

Xi made the remarks at the opening ceremony of the 2nd World Investment Forum  in Xiamen City in southeast China's Fujian Province.

 Foreign direct investment this year is set to "surpass $100 billion", compared to $90 billion dollars last year, an official with China's Ministry of Commerce said on Sunday.

Moving in the other direction, China is now fifth in outbound direct investment with a total volume of $56.5 billion, compared to a ranking of 12th in 2008.

In 2009, the eighth consecutive year that the nation's ODI grew, the increase was more than 50 percent. 

China Import Drive: China will "vigorously" expand its imports of key products as the nation strives to cut its trade surplus, Chong Quan, Beijing's deputy international trade representative, said on Monday.

Despite the surge of its trade surplus in July, which stood at $28.7 billion, China's total for the year will be about $150 billion, compared to $190 billion in 2009 and $290 billion in 2008. The country even registered a rare trade deficit of $7.2 billion in March.

China Calls for More British Hi-Tech: Chinese Vice Premier Wang Qishan has expressed his hope that Britain would expand exports of high-tech products to China.

Wang made the remarks when meeting with Prince Andrew, the United Kingdom's Special Representative for International Trade and Investment.

Cross-Strait Economic Pact: The Economic Cooperation Framework Agreement (ECFA) between the Chinese mainland and Taiwan, signed in June, came into effect Sunday.

Under the agreement, the two sides will gradually reduce and remove trade and investment barriers, and they will discuss agreements for investement and trade in commodities and services.

Growth in Industrial Production: The rise in China's industrial output is likely to slow to around 10% in the second half of 2010 but the annual increase will be about 13%, a Chinese official has announced.

 The slowdown in industrial production in the second half comes as China adjust the structure of its economy and transforms its economic growth model.

Chevron, BP Explore Oil Blocks in South China Sea: China National Offshore Oil Company Limited announced that Chevron China and BP China will explore three deepwater oil and gas blocks in the South China Sea.

The financial terms of the deal were not disclosed.  

China Plan for Industrial Relocation: Beijing has unveiled plans to encourage low-end industries to relocate from the country's coastal areas to inland provinces.

Cuts in Carbon emissions: China's top 100 retail companies were estimated to have cut 1.63 million tonnes of carbon dioxide emissions in 2009, with a 16% reduction in power consumption.

Inflation at 22-month High: China's consumer price index (CPI) rose by 3.5% in August from the previous year, the National Bureau of Statistics (NBS) said Saturday.

The country's CPI increased 2.8% year-on-year in the first eight months. The Chinese government in March set a target of 3% inflation.

The producer price index rose 4.3%, a fall from July's 4.8%.