Chen Jian, assistant minister of commerce, said yesterday that concerns China is competing for world resources are incorrect, despite the country's increasing investment in overseas resources.

"China's overseas co-operation in the resources sector is to promote mutual development through market sharing," Chen said at a press conference held by the State Council Information Office.

He said overseas co-operation in the sector started in the 1950s and 1960s when China helped Tanzania to exploit mineral resources like coal and copper.

Such co-operation helps partners through technology transfer, developing potential resources into something which can drive economic development forward, he said.

Although China's economic growth is resulting in an increase in the consumption of resources, the country has persisted in -- and will continue to persist in -- the policy of mainly relying on domestic supplies.

Meanwhile, China has taken a series of measures to improve energy efficiency.

Chen said there was no reason to say China's rising energy demands would arouse international conflict.

He added that, on the basis of equality and mutual benefits, China will further co-operate with other countries to establish a fair, new economic order, including one for energy co-operation.

When promoting overseas economic co-operation, China will keep its preferential policies for foreign-funded enterprises unchanged in a bid to attract foreign investment, Chen also said yesterday. He said this was in line with international regulations.

"Preferential policies for foreign-invested enterprises do not violate World Trade Organization rules," Chen said.

Preferential policies for foreign companies is a method also adopted by other countries to attract foreign investment.