China will continue opening its internal trade sector step by step in the years to come, a senior Chinese economist said in Shanghai.

Speaking at a national conference on chain businesses which opened in Shanghai on Wednesday, Huang Hai, chief economist of China's State Administration of Internal Trade, said that China will continue to expand its trade in accordance with local and international demands.

China is considered one of the world's largest markets. Official statistics reveal that its total retail sales reached 1. 48 trillion yuan in the first half of this year, up 6.4 percent from the same period last year.

Since China opened its internal trade sector several years ago, about 300 overseas-funded retail firms have been set up, accounting for only 0.1 percent of the country's total retailers. "This leaves much room for further development of overseas-funded commercial firms", Huang said.

China has issued Regulations on overseas investment in commercial businesses on a trial basis, allowing overseas investors to establish joint retail sales outlets in major capital cities, autonomous regions, and a number of designated cities in China. Joint retail outlets were previously restricted to eleven coastal cities.

Wholesale business has been opened to overseas investors as well, though it is still restricted to Beijing, Shanghai, Tianjin and Chongqing.

Retail and wholesale giants like Wal-Mart and German Metro have shown great enthusiasm in expanding their business in China. (Xinhua)