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| Total solar eclipse is seen in southwest China's Chongqing Municipality, at 9:16 a.m. on July 22, 2009. Photo:Xinhua/Zhou Hengyi
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China plans to use its more than $2 trillion in foreign exchange reserves, to accelerate Chinese business expansion overseas, the country's premier said.
"We should hasten the implementation of our 'going out' strategy and combine the utilization of foreign exchange reserves with the 'going out' of our enterprises," Wen Jiabao told Chinese diplomats.
Wen said Beijing also wanted Chinese companies to increase China's share of global exports, The Financial Times reported.
The "going out" strategy is a term used to encourage investment and acquisitions abroad, in particular by big State-owned enterprises such as PetroChina Co., owned by China's biggest oil producer; Aluminum Corporation of China Ltd., the country's largest aluminum producer; China Telecom, its largest fixed-line and mobile-phone provider; and Bank of China Ltd, one of China's big four commercial banks.
Wen did not provide detail how much of the $2.132 trillion in international reserves would be made available to Chinese enterprises.
China’s outbound non-financial direct investment rose to $40.7bn last year from just $143m in 2002.
China's State news agency Xinhua, reports that Wen Jiabao urged long-term preparedness for dealing with the global downturn, saying China will tackle the development issue through reform, at the meeting for Chinese diplomats.
Chinese President Hu Jintao also made a speech at the four-day meeting.
Wen said that the global financial crisis has plunged the world into deep recession and it's difficult to say the global downturn has reached the bottom.
"The recovery of the global economy will be a slow process with twists and turns, there must be a long-term preparedness to effectively deal with (the global downturn)," said Wen.
Wen said that China will stick to mutual-beneficial strategy of opening-up and the use of outbound investments. China will combine expansion of domestic demand with stabilizing foreign demand, continue to use foreign investment, and accelerate the pace of "going out" strategy, Wen said.
Wen said China will continue to reform the renminbi/yuan, exchange rate forming mechanisms, and maintain the yuan's exchange rate at a stable level.
China will also participate extensively in international cooperation in non-traditional fields and further work with other countries to address the climate change issue, Wen said.
