CHINA has set targets of 10 percent growth both in foreign trade and non-financial overseas direct investment in 2011, a senior commerce official said yesterday.

Huo Jianguo, president of the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, made the remarks at a national commerce work conference in Beijing.

Minister of Commerce Chen Deming told the conference that China will promote steady growth in exports in 2011, keep foreign trade policy basically stable, and explore emerging markets while restricting the export of high polluting, high energy-consuming and resource-consuming products.

The country will also increase imports next year, simplify import procedures and promote balanced trade, he added. Further, China will increase imports of advanced equipment and key components to assist with the transformation of the economic development pattern and industrial upgrading.

Chen also forecast China's foreign trade will grow more than 30 percent year on year to US$2.9 trillion this year. China will become the world's top exporter and the second-largest importer by the end of this year.

The market share of China's exports volume rose to 10 percent of the global total in 2010, compared with 7.3 percent by the end of 2005, with improved structures, said Chen, adding that the country has increased exports of high-tech goods as well as mechanical and electrical products.

China's foreign trade totaled US$2.68 trillion in the first 11 months of the year, up 36.3 percent year on year, according to the General Administration of Customs.

Chen noted the challenges facing China's trade, including the simmering debt crisis, slower global growth and trade frictions.

He also said retail sales are estimated to reach 15.7 trillion yuan (US$2.3 trillion), up 18 percent from a year ago, thanks to the government's stimulus packages to spur consumption in the rural areas and for upgrade needs.

China offered subsidies to rural residents for buying vehicles or home appliances as well as to those who traded their old stuff for new in a bid to stimulate domestic consumption and power the country's economic recovery. "We will enlarge the portfolio of home appliances in the 'home appliance trade in subsidy' scheme and deepen other boosting measures next year," said Chen.

China's foreign direct investment is expected to increase 11 percent to US$100 billion in 2010, with the country becoming the world's second-largest destination for offshore outsourcing services.

China's outbound direct investments in non-financial sectors could reach US$50 billion this year after seeing an average annual growth rate of 38.8 percent for the last five years, Chen revealed.