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China's export of electronic information products is expected to grow 14 percent year-on-year to 390 billion U.S. dollars this year, China's Ministry of Information Industry has predicted.

Vice Minister Lou Qinjian said the government encouraged large electronic information companies, which include computers, surveying instruments and communications products, to carry out overseas mergers and acquisition s or invest aboard to advance their overseas presence.

China will also improve the utilization of foreign investment and support multinationals to build research and development centers in China, Lou said.

The Ministry warned that electronic information products might get increasingly susceptible to disputes as the exports had been growing rapidly in recent years.

In 2006, the sector's exports were estimated to top 300 billion U.S. dollars, an obvious rise from previous year's 260 billion U.S. dollars.

Foreign trade of the sector hit 520 billion U.S. dollars in the first ten months of last year, accounting for 36.5 percent of China's total foreign trade in this period.

The ministry urged industrial associations to respond actively, including helping the government to rectify market order, preventing companies from conducting vicious competition by price cuts and playing as coordinators amidst disputes.

(For more biz stories, please visit Industry Updates)