Retail sales are expected to reach 6 trillion yuan (725.5 billion) in 2005, up 10 percent over the same period last year, while the sales of means of production to reach 13 trillion yuan (1.57 trillion dollars), up 14 percent, according to a report jointly released by the Ministry of Commerce and the State Council Development and Research Center.

The report on commercial and logistics industry released on Tuesday says that China's economy will maintain rapid growth in 2005, with gross domestic product growing at 8 percent and investment in fixed assets growing by 20 percent. This growth will promote the rapid development of the commercial and logistics industry, says the report.

The report also predicts that because of policies change on export tax refunds and the deteriorating of international market environment, the export of Chinese goods will slow down by some extent. In the meanwhile, the demand of import of those commodities which are scarce on domestic market will increase by a large margin. Total foreign trade in the country will increase by 15 percent, predicts the report.

In 2004, China's commercial and logistics industry witnessed a rapid development, with the retail sales, transaction of means of production and trade all reaching record highs.

In 2004, the retail sales stood at 5.39 trillion yuan (651.7 billion dollars), up 13.3 percent, while transaction of means of production reaching 11 .4 trillion yuan (1.37 trillion dollars), up 19 percent, and foreign trade topping 1 trillion US dollars, up 35.7 percent.

Source: Xinhua