As the third largest trader in the world, China is making more contributions to the growth of world trade and economy, according to Chinese scholars attending a conference in Singapore on Tuesday.

"China's domestic demand has a significant influence on foreign trade balance," said Professor Zhang Xiaoji, director general of Foreign Economic Relations Department, Development Research Center of China's State Council, at a seminar organized by the Lee Kuan Yew School of Public Policy on China and India.

As China's economic growth continues, Zhang said, it has become increasingly attractive to foreign direct investment (FDI) in industries such as info-communications, automobile manufacturing and service, as well as research and development (R&D).

"In the whole process of opening up and development with globalization in China, FDI has played the most important and most positive role," said Fan Gang, director of National Economic Research Institute of China Reform Foundation.

He further explained that investors introduced into China not only capital and technology but also business experience and management know-how.

Meanwhile, the international industrial transfer has boosted China's export processing industry with an upgraded structure of export products, Zhang added.

Calling for an open, fair and stable trade order, which is crucial for China's development, Zhang assured the audience that China will maintain its FDI attraction policy and enlarge its outward investment as well.

China will also actively engage in regional economic cooperation and launch more talks on bilateral free trade areas ( FTAs) with other economic powers, according to Zhang.

Source: Xinhua