China is playing a more important role in global economic development, according to regional and global business leaders and economists at the 2003 Forbes Global CEO Conference, which opened in Shanghai on Tuesday.

China's economy has maintained a high growth rate for over 20 consecutive years, bringing about huge business opportunities and injecting energy into the world economy, said Steve Forbes, president, chief executive and editor-in-chief of Forbes, a US business magazine, at a theme session of the three-day conference, scheduled to close Thursday.

Forbes said Shanghai was an economic hub and served as a window through which China opened to the outside world, and the fact that Forbes chose Shanghai as the host city for the conference was testimony to the growing importance of China to the global economy.

China was playing a more important role in the international community in terms of business, finance and geopolitics, Forbes said.

Against a backdrop of global economic downturn, China's economy had grown rapidly in recent years. Statistics showed China's gross domestic product (GDP) increased by an average 9.3 percent annually between 1989 and 2002. China's GDP topped 8 trillion yuan (US$967.35 billion) last year.

The improving investment environment and potential of the China market had attracted an increasing number of overseas investors. In 2002, China used a record US$52.7 billion of foreign direct investment, the highest in the world.

Meanwhile, more Chinese enterprises had begun to explore business opportunities on the overseas market. China had over 30,000 enterprises with businesses in foreign countries and a combined investment topping US$10 billion.

China's success in developing its economy gave great impetus to the world economy and many countries shared the benefits of China' s economic achievements, said Joseph Stiglitz, a winner of the Nobel economics prize and professor with Columbia University of the United States.

Stiglitz said that as the largest developing country in the world, China's entry into the World Trade Organization two years ago helped promote economic globalization and liberalization of trade and helped protect the interests of developing countries.

The World Bank predicted that China's imports were expected to account for 6 percent of the world's total GDP by 2005 compared with 3 percent now. The latest survey carried out by the Mastercard International showed the number of Chinese traveling abroad was expected to surge by 18 percent to 6.32 million in the second half of this year, becoming a major driving force behind the recovery of tourism in Asia-Pacific region.

China had become the top choice of many multinational corporations in implementing their global business strategies. Many enhanced their presence in China by making extra investments, establishing headquarters and research and development centers.

Alcatel, the world's leading communications equipment provider, moved its Asia-Pacific headquarters to Shanghai in 2001, and early this year, it set up in Shanghai its third global research and development center.

Ron Spithill, president of Alcatel Asia-Pacific region, said China was the most important communications market in the world, and was important for future development.

While introducing advanced technologies and management experience to China, multinational corporations had made big profits in the country.

Of the Fortune top 500 enterprises, 174 had invested a total US$11.2 billion in 328 projects in the Pudong New District, Shanghai, by the end of last year. They enjoyed an average 15 percent return on investment (total profits divided by actual investment). Some of the investors including GE reaped more than 100 percent return.

Stiglitz said China's per capita GDP lagged far behind that of developed countries, but there was no grounds for doubt that China's economy would continue its healthy development and its role in energizing the global economy.

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