China outbound investment reached $20 bln-Xinhua

BEIJING, Jan 19 (Reuters) - China's outbound investment totalled about $20 billion in 2007, Xinhua news agency said on Saturday, a figure that is still less than one third of the investment that flowed into China.

Chinese investors overseas are encouraged to explore the heavy chemicals, telecommunications, transportation and consultancy sectors, Xinhua quoted Commerce Minister Chen Deming as telling a national meeting on commerce.

In the first 11 months of 2007, foreign direct investment in China reached $61.67 billion.

At the end of 2007, cumulative overseas investment by Chinese firms reached $127.6 billion, Xinhua said, up from $90.63 billion at the end of 2006. The figure implies that the outbound investment in 2007 may be revised up significantly in the months to come.

In 2006, Chinese outbound investment topped a record $21 billion, with non-financial sectors accounting for $17.6 billion, according to a final figure published in September.

Some 120,000 Chinese firms have set up offices overseas, double the figure at the end of 2002. About 1.46 million Chinese citizens work overseas, Xinhua estimated.

(Reporting by Lucy Hornby; editing by Michael Roddy)