China will continue to encourage companies to invest overseas and cooperate with counterparts in other countries and regions, said a high ranking official on Thursday.

Wang Zhongyu, Vice-Chairman of the National Committee of Chinese People's Political Consultative Conference (CPPCC), made the statement at the International Forum on Going Global of Chinese Enterprises, which opened Thursday.

Wang said that "encouraging companies to go global" is an important strategy in China's long-term development plan. Through going global, a batch of companies have become more competitive internationally, such as PetroChina, China Ocean Shipping, Haier and TCL.

These companies brought capital, technology and products to overseas markets, and increased taxes and employment in the region, said Wang.

Wang said that though the achievements, China's companies are still at the initial stage of "going out." The total investment is still low and some companies still lack experiences in launching trans-regional investment.

According to statistics from the Ministry of Commerce, by the end of 2004, China invested 37 billion US dollars outside China, accounting for less than 0.5 percent of the total outward investment worldwide.

China has invested in more than 160 countries and regions, mostly developing countries in Asia Pacific, Africa and Latin America.

An Min, Vice-Minister of Commerce, said that with rapid economic development, China's outward investment will increase gradually.

An said that the country is trying to speed up instating a plan for outward investment and simplifying the procedures in financing, insurance, foreign exchange and quarantine to support companies to go global.