The plans of fast-food giant McDonald's to open 100 new restaurants a year in China are on track, the company has said, even though it is shutting branches and cutting jobs across the globe.

On Monday, executives said they plan to spend $400m (�251.7m) less worldwide on new McDonald's-brand restaurants in 2003, on top of $350m of cuts already announced.

"There has been no effect on our business," a spokesman at McDonald's Beijing office told Reuters.

"We are fully confident in McDonald's growth in China and will continue to develop our China business as planned," the spokesman said.

In its latest restructuring to end a prolonged slump, McDonald's announced last week it would shut 175 outlets and cut 400 to 600 jobs in the Middle East and Latin America.

In September it announced plans to open at least 100 outlets in China each year.

Indigestion ahead

McDonald's still expects to add 600 new restaurants next year including 210 in Europe, 200 in the Asia-Pacific region, 170 in the US and Canada.

There are now more than 500 outlets in China from 184 five years ago, amid stiff competition from other fast food giants like KFC.

On Monday, rating agency Standard & Poor's said it might cut the fast-food chain's long-term debt rating because of difficulties in the US market and problems overseas.

McDonald's shares closed on Tuesday at $17.09, after striking a fresh seven-year lows and down from more than $30 in June.