China will revise and improve the law for foreign investment and gradually treat foreign investors in accordance with rules governing national treatment, said recently the Deputy Minister of Foreign Trade and Economic Cooperation Zhang Xiang. The country will revise the "Provisional Regulations on the Investment Guide for Foreign Investors" and the ¡°Industrial Guide to Foreign Investment", and explore other channels to introduce foreign capital, such as purchasing, annexing, investment fund and security investment. Zhang revealed that in the field of foreign trade and economic cooperation alone, China would revise l73 existing laws and administrative rules and regulations, abolish 448 regulatory documents and newly promulgate 23 laws and administrative regulations.

The work mentioned above involves the following areas: (l). Revision of the differential provisions for foreign-invested firms in existing laws according to the principle of granting national treatment to foreign investors. (2). To abandon the practice of issuing internal documents and rules as a management basis according to the principle of transparency. (3). To abolish all local and departmental rules not in compliance with WTO rules according to the principle of uniform policy. (4). To speed up promulgating new rules, especially rules stressing protection of intellectual property rights. At the same time, China will strengthen the administration according to law and law enforcement and legalize economic management.

Zhang stressed that China will further open its foreign trading market and give the right to all economic sectors irrespective of their operation method and production scale, except some special sectors vital to the national economy and the people's livelihood. Furthermore, by establishing development funding and improving the export credit and credit insurance system for small and medium-sized enterprises, China will encourage small and medium-sized enterprises to expand exports. The country will also encourage the establishment of intermediary organizations, in order to make councils of commerce and associations the main force in the development of foreign trade and economic cooperation following entry into the WTO. Zhang also disclosed that China would increase its investment overseas, contributing to development of the world's economy and the developing countries in particular. To date, China has opened about 5,700 enterprises in more than l60 countries and regions.

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The State Administration of Radio, Film and Television, the Ministry of Foreign Trade and Economic Cooperation and the Ministry of Culture have jointly issued the Interim Regulations Concerning Foreign Investment in Cinema. Main contents of the regulations are as follows:

1. To meet the need of reform and opening to the outside, and to attract foreign funds and introduce advanced technology and equipment in the development of China's film industry, the regulations are formulated according to the Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures, the Law of the People's Republic of China on Chinese-Foreign Equity Cooperation Ventures, and the Regulations on Film Control.

2. The regulations shall apply to foreign companies, enterprises and other economic organizations and individuals, based on the principle of equality and mutual benefit, and with the approval from the Chinese Government, in establishment of Sino-foreign joint ventures with Chinese companies and enterprises, construction and transformation of cinemas, and screening films in China.

3. Wholly foreign-owned cinema is not allowed.

4. Foreign businesses investing in cinemas must meet the following conditions: a). To be in keeping with the distribution and plan of local cultural facilities; b). To have registered capital not less than RMB l0 million; c). To have fixed business (showing) places; d). Sino-foreign joint venture and cooperation cinemas cannot be named with names of foreign film and television (media), and cinemas; e). The investment in the registered capital by the Chinese side should not be less than 51% in the Sino-foreign joint venture cinemas, and the Chinese side should have control of the business in the Sino-foreign cooperation cinemas; f). The joint venture and cooperation term should not exceed 30 years; g). To abide by related law and regulations of China.

5. The Chinese side, which has state-owned assets as investment (except investment in cash), should make an appraisal of the state-owned assets according to related regulations on appraisal and control of state assets, and should be confirmed by state assets control departments of provincial level or higher.

The regulations have also made clear provisions on approval procedures and qualification certificate materials and bank credit standing.

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The People's Bank of China and the Ministry of Finance announced recently the list of 68 certified public accounting firms permitted to conduct finance-related audit business in China. The 68 firms, which consist of 63 domestic firms and five foreign-funded ones, including Arthur Anderson, Huaqiang Certified Public Accountants, Pricewaterhouse Coopers, Deloitte Touche Tomatsu, BPMG and Ernst £¦ Young. Financial institutions, including policy-related banks, state-owned banks, share-holding commercial banks, foreign-funded banks, trust and investment companies and finance leasing companies, will have to select one of the 68 certified public accounting firms to conduct their auditing business. Financial institutions, which now entrust other firms with their business, will have to stop any further business.

The 68 firms are required to abide by the Certified Public Accountant Law of the People's Republic of China and other related regulations when auditing finance-related business. China will practice a yearly inspection system on these firms to ensure the quality of the auditing. Of the 68 firms, any that fails to meet the qualification standards during the yearly inspection will be stopped from auditing finance-related business, while other firms, which reach the designated standard, will be added to the list. Experts hailed the move as a further measure to rectify the country's chaotic professional service market, which has grown rapidly over the past decade. The country has already taken other important measures to put the market in order.

By the end of 2000, China's professional service companies, including the certified public accounting firms, had separated themselves from government departments. There is now a fire wall between the staff of professional service firms and government departments, and professional service companies will no longer have a place in the budgets of governmental departments. China has to ensure that the work of certified public accountants is independent and unbiased. In the past, some government departments had used their power to influence the work of professional service agents. Many government departments had themselves set up one or more professional service companies in which to use their administrative power in the pursuit of economic gains.

The named intermediary companies, however, will be required to handle their business independently and be responsible for their bosses. Meanwhile, the Ministry of Finance and several other government departments are pushing for the merger of professional service companies. More marriage between domestic accountancy firms and international giants are likely to happen as the country seeks ways to encourage mergers and acquisitions in the sector to follow the call of WTO entry. There will likely be a growing demand for more accountancy businesses as the national economy continues its boom over the next decades. The hook-ups between domestic and overseas accountancy companies are believed to be able to help firms dramatically sharpen their competitive edges in the fledgling market, where the blossoming economy provides abundant business opportunities for accounting. Earlier in February, Ernst £¦ Young China announced a tie-up with the largest domestic accounting firm--Shanghai-based Da Hua--making it the first international accounting firm to merge with a domestic counterpart.

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China's new Customs Law, which went into effect January l, will make it more convenient for enterprises to conduct foreign trade and will strengthen supervision over law enforcers, said Qian Guanlin, Director of China General Administration of Customs. The previous Customs Law took effect on July 1, l987. It has played an important role in safeguarding the country's sovereignty and interests, reinforcing the customs supervision, guaranteeing tax collection, promoting foreign trade, protecting the legal rights and interests of the parties concerned, and cracking down on smuggling and other criminal and illegal activities. However, there have been great changes in the economic situation at home and abroad in the last l3 years, and the law promulgated in l987 was no longer entirely in line with the present requirements for supervision and control of the entry and exit.

The new Customs Law sets higher standards for the execution of administrative power by Custom. Many new rules have also been added to protect the rights and interests of enterprises. One of the major revisions made under the new law is the addition of one chapter on the supervision of law enforcement. lt. is the precedent in the existing administrative legislation in China. The purpose is to enhance supervision and restrictions of the power of customs personnel in law enforcement. While authorizing the customs with greater power in law enforcement, rigid restrictions are imposed on customs personnel in utilizing their authority. To prevent customs from violating the legal rights and interests of the person concerned in law enforcement, restrictions are imposed on the power of the custom directors, and responsibility for compensation for the customs administration in violation of the law is stipulated, the degree of transparency of the law is increased and exchange of customs personnel is institutional.

Besides, the revised law has added supplementary rules to improve and solve the following problems: 1. Basically it solves the legislation problems affecting customs in hitting smuggling. 2. The establishment of a new customs supervision and control system following the reform to cope with demands of development of its work and the reform of custom passage operation. 3. Improve the imperfect supervision and control system of the previous Customs Law. For example, supplementary rules are added to customs supervision and control system in the previous law, including the law enforcement procedure, management of processing trade, tariff collection and management, and legal responsibility of tariff delivery. They are further improved, readjusted and more detailed. 4. The revised law creates conditions in legislation relating to China's accession to the WTO, in following its rules and other international customs and conventions and for China's Customs Law to dovetail with international convention.

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The average annual economic growth rate over the past five years was 8.3% and China is trying to double its GDP by the year 2010, Premier Zhu Rongji said in his report on the draft Outline of the 10th Five-Year Plan for National Economic and Social Development at the opening meeting of the Fourth Session of the Ninth National People's Congress (NPC). According to the next five-year plan, China will endeavor to keep the average annual GDP growth at around 7% through the 10th Five-Year Plan period (2001-05). Although the target is slightly lower than the actual growth rate through the Ninth Five-Year Plan period (1996-2000), it is still fairly high.

China will gear its macro-economic policies to the changing economic situation, said Zhu. For the near future, the country will continue to implement a proactive fiscal policy to increase investment and stimulate consumption, and a sound monetary policy will be adopted to keep the currency stable. This year, China will issue l50 billion yuan (¡ç18 billion) of long-term treasury bonds and invest the incoming revenue in projects under construction and development projects in the western regions. To keep in line with economic globalization, China will do a better job in opening to the outside world. The country should lose no time in preparing for its entry into the WTO and fulfilling its tasks during the transitional period. Practical measures include establishing a foreign trade system compatible with international norms, stepping up the work of revising relevant laws and regulations and making sure professionals are familiar with regulations governing international trade. China will open up the service sector to foreign investment step by step and encourage foreign investors to invest in high-tech industries and infrastructure, set up research and development centers in China and participate in the restructuring and upgrading state-owned enterprises.

In carrying out the development of the western region, China will stress the construction of infrastructure and protection of the environment and strive for major breakthroughs within 5 to 10 years. At the same time, the country hopes to develop science, technology and education considerably. Zhu described agriculture, rural areas and farmers as being of great importance to the country's reform, opening up and modernization drive. The principal economic task should focus on strengthening agriculture as the foundation of the economy and on increasing farmers¬ð incomes. To achieve the goal, China will accelerate the pace of restructuring agricultural production , push reforms in rural areas and step up the construction of agricultural and rural infrastructure.

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In order to keep up with the fast economic development occurring in western China, the Chongqing Municipality has started a series of projects aimed at developing a more advanced network of land, air and river transportation facilities in the new century. The city plans to invest 45 billion yuan (¡ç5.3 billion) to build a large network of express-ways that will connect with large coastal and inland cities over the next five to six years. With 9 expressways currently under construction, Chongqing will see the completion of the 75-kilometer-long first ring road this year, and is preparing to build the 195-kilometer-long second ring road. The city will also soon start to construct the railway leading to Huaihua, Hunan Province, and will finally see 7 main railways running across its territory. Chongqing together with the Civil Aviation Administration of China, invested 200 million yuan (¡ç24 million) to build the runway for the Jiangbei International Airport, one of the 10 largest airports in China, and plans to invest more money to construct a new building and other subsidiary facilities for the airport. The airport is expected to handle 60,600 flights and 800 million passengers annually when these projects are finished. As for river transportation, Chongqing is speeding up the upgrading of infrastructure facilities in ports and docks along the Yangtze River, and will focus on developing container transportation. The city will also build the Baishawan Port in the Three Gorges Reservoir, which should enable ships of 10,000 deadweight tonnage to reach Chongqing in all seasons of the year.

Chongqing has grown into the largest commercial and trade center in western China. The city has 2,200 marketing outlets. More than 80 of the outlets cover a floor space of 5,000 square meters each. Five shopping centers and 10 department stores with sales volume exceeding 100 million yuan (¡ç12 million) each have been built in urban districts. The one-square-kilometer commercial district around the Liberation Monument in downtown Chongqing features more than 2,000 shops, which generated 11 billion yuan (¡ç1.3 billion) in sales value last year. The Chongqing Department Store Co sells 2 billion yuan (¡ç240 million) worth of goods annually, making it the largest retail store in western China. The Chaotianmen Wholesale Market has increased its transaction value from 3 billion yuan (¡ç360 million) to 7 billion yuan (¡ç845 million) over the past three years. Goods traded on the market came from or were sold to more than 200 counties in neighboring Sichuan, Hubei and Hunan provinces. Apart from domestic shops some world-renowned chain enterprises including Carrefour, McDonald's, KFC and the New World have opened 21 branches in Chongqing. Their sales value totaled 1 billion yuan (¡ç120 million) last year.

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Shaanxi, a province in Northwest China, plans to invest 85 billion yuan (¡ç10.24 billion) in infrastructure construction in order to speed up its economic growth in 2001. The investment and other efforts will ensure 9% GDP growth, which is higher than the planned average national growth level. Of the total investment, 26 billion yuan (¡ç3.13 billion) will be used in 72 key road, railway, communication, urban infrastructure, ecological environmental protects as well as educational and cultural facilities. With this investment, Shaanxi will add another 134 kilometers of highway and 500 kilometers of second class road. The investment will also support high-tech industries, including electronic information, photo electricity, biological engineering, new materials and environmental protection technologies. The total income of technology production and trade in the province's high-tech zones will reach 50 billion yuan (¡ç6.02 billion) this year.

Home to hundreds of ancient cultural relics, buildings and ruins, Shaanxi is one of China's hottest tourist destinations and its tourism industry, which attracts thousands of visitors annually, is one of its most important economic sectors. The province will enhance its tourism industry and expect 10.5% of growth in 2001. The province will put 3.5 billion yuan (¡ç421 million) of the investment into bettering the conditions of agricultural and water conservancy facilities, in order to raise agricultural production and increase farmers¬ð income.

Shaanxi, an inland province in Northwest China, will take more effective measures to further improve its investment climate in 2001, in order to attract more foreign capital. The province plans 2001 as a rectifying year to better the investment environment and will take nine new measures named ¡°four checking-up terms", and ¡°five rectifying measures" to bring about its plan. Shaanxi will update and stop using a number of local regulations, laws and policies which do not fit with WTO regulations and will also revoke some administrative charges levied by local governments at different levels. The provincial government will also put an end to a number of governmental documents which allow trade monopolization and regional obstacles. This year Shaanxi will further rectify and improve its services at tourism sites, urban order, traffic, public security and law enforcement.

Shaanxi will establish a center for complaints and a system of joint management for foreign investors, in order to further better its service for those who invest and do business in the province. The province will also soon issue local laws to protect foreign investors¬ð legal rights. A number of favorable policies to encourage foreign investors will be made and adopted in 2001, involving tax relief, loans and land use. In the past 20 years since the implementation of the opening-up policy, more than 3,000 joint ventures have been established and some ¡ç2.7 billion of direct foreign investment has been introduced into the province. Shaanxi hopes to attract more foreign investment with its improved investment climate and in the wake of the strategic west development in the new century.

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Jiangsu, a province with one of the strongest economies in China, is now targeting the export industry in a mass restructuring move to heat up its business climate. The province was once known for its pioneering township enterprises -- mostly collectively owned companies which started up in rural areas and became a major element of the economic structure. It is now making its local economy even more export-orientated in order to keep up its momentum and continue as one of the strongest provinces in the country. The GDP of the province is expected to increase at an average annual rate of about 10% in the next five years, reaching 1,340 billion yuan (¡ç167 billion) by 2005, the last year of the 10th Five-Year Plan period (2001-05).

The past five years have seen Jiangsu experience its fastest develop-ment since the opening-up and reforms in the late 1970s. During the period, the province's GDP has increased at an annual rate of 11.2%. The per capita GDP increased from 7,290 yuan (¡ç878) in 1995 to 11,700 yuan (¡ç1,409) in 2000, much higher than the average national level. Jiangsu's export-orientated economy has been developing with an unprecedented speed. More than 34,000 joint ventures and solely foreign-funded companies, including 110 of the world's top 500 companies, have invested in various industrial sectors. The total value of the province's exports and imports between 1995 and 2000 has been increasing at an annual rate of 22.5%. Foreign investment amounted to ¡ç32.5 billion in that period, more than double that of the 8th Five-Year Plan period (1991-95). The total value of exports in 2000 exceeded ¡ç25 billion, an increase of 40% from 1999.

Jiangsu has set a goal of 10% for its GDP growth rate for 2001. A total investment of 25 billion yuan (¡ç3 billion) will be put into the construction of information infrastructure, and the provincial government will continue to support the construction of the Jiangsu Software Park and the Suzhou Industrial Park. The province will also give support to 200 large-scale enterprises for their e-commerce development, and an additional 150,000 enterprises will be linked up to the Internet. The province's software industry is expected to make a profit of 50% more than last year, while the information service industry is also expected to grow, expecting a 30% yearly growth rate. The information technology manufacturing industry is looking forward to a growth rate of 20%. Investment in high-tech industries is another target the province has set for 2001. An input of 4 billion yuan (¡ç482 million) will be injected into 50 high-tech projects, including the development of nanometer technology and the modernization of traditional Chinese medicine. The added value of high-tech industries will make up 19% of the total industrial added value this year. The structure of export products will be adjusted to economic globalization. Enterprises in Jiangsu will explore new markets in Eastern Europe, Africa and South America while strengthening its traditional markets in Japan, North America and Europe. Foreign investment will be preferred in high-tech industries, the restructuring of state-owned enterprises and infrastructure construction. New ways to attract direct foreign investment will be tried, such as mergers and acquisitions, investment funds and security investments.

Many new industrial sectors have been built up alongside traditional industries, which have been renovated at the same time. Pillar industries currently include textiles, machinery, electronics, petrochemicals, biomedicine, information technology and building materials. Jiangsu is steadily making preparations for China's impending entry to the WTO and looking forward to the challenges and opportunities it would present. A good investment environment and improved services will remain the major attractions for overseas investment, and more areas will be open to foreign investors, especially in high-tech sectors.

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Projects to attract domestic and foreign investment:

1. Plant cellulose. Advanced technology will be adopted. Form: Joint venture. Investment: ¡ç1.2 million.

2. Degradable tableware. Environmentally-friendly tableware will be produced. Form: Joint venture or cooperation. Investment: First phase of ¡ç2 million, second phase of ¡ç3.1 million.

3. Globefish cultivation. The city's natural conditions are suitable for cultivating globefish. Form: JV or cooperation. Investment: ¡ç2.3 million.

4. Advanced lubrication oil. Production of high-quality de-compress distillate oil, a raw material for producing advanced lubrication oil. The annual production: 50,000 tons. Form: Joint venture or cooperation. Investment: ¡ç5.67 million.

5. Asphalt production. The annual production capacity of 300,000 tons will be expanded to 500,000 tons. Form: JV. Investment: ¡ç30 million.

6. Asphalt carbon fiber. The annual production capacity of asphalt carbon fiber and activated carbon fiber will be 500 tons. Form: Joint venture. Investment: ¡ç2.4 million.

7. Modified asphalt. The company plans to produce high-quality modified asphalt. Form: Joint venture. Investment: 5 million.

8. Technological innovation of methyl alcohol production equipment. Annual production capacity is expected to be 30,000 tons. Form: Joint venture or cooperation Investment: ¡ç4.82 million.

9. Lenery salt production. The company's major product, lenery fertilizer, has a promising future. Form: JV. Investment: ¡ç16.8 million.

10. Special lubrication oil. To produce advanced lubrication oil by adopting world advanced technology and equipment. Form; Joint venture. Investment: ¡ç3 million.

11. Salicylic acid production. The process produces no waste water. Form: Joint venture. Investment: ¡ç7 million.

12. 2.6-methyethyl-aniline. There is a great demand for this product. Form: Joint venture. Investment: ¡ç2.4 million.

13. Polyoxin production. The annual production capacity is expected to reach 3,000 tons. Form: Joint venture. Investment: ¡ç4.4 million.

14. Vitanal liquid bio-fertilizer production. It is widely regarded as a substitute for chemical fertilizer. Form: JV. Investment: ¡ç5.5 million.

15. Expansion of ethene production. The annual production capacity of 160,000 tons will be expanded to 1 million tons. Form: Joint venture or foreign government's loan. Investment: ¡ç2.9 billion.

16. Expansion of thermo-heating supply. A 130T/H boiler and a 25,000 KW turbine generator set will be built. Form: Joint venture or co-operation. Investment: ¡ç4.8 million.

17. Chemical firm renovation. The methanol and form-aldehyde sell well on domestic and foreign markets. Form: Solely foreign-funded, joint venture, cooperation, buyout. Investment: ¡ç6 million.

18. Heat collapsible girdle expansion. Introduction of high-tech. Form: Joint venture. Investment: ¡ç2.4 million.

19. Ring-pull can production. The product is expected to reach the world standard. Form: JV or cooperation. Investment: ¡ç2.2 million.

20. Laser oil-well pump. Form: Joint venture or cooperation. Investment: ¡ç940,000.

21. Heat pipe heat-exchange equipment production. Form: Joint venture. Investment: ¡ç2.16 million.

22. Transformer production. The factory has been granted an ISO-9001 certificate. Form: Joint venture. Investment: ¡ç2 million.

23. Nanotechnology. The technology can be applied to a wide range of industries. Form: Share holding system or long-term loans. Investment: ¡ç3.8 million.

24. Producing nylon and thermosol by fermenting petroleum. The pro-cess is a combination of biological engineering technology and nylon synthesis technology. Form: JV. Investment: ¡ç14.2 million.

25. Color coated steel plates. The product is widely applied to a wide range of sectors. Form: Joint venture. Investment: ¡ç39.5 million.

26. Welding wire production. Form: Joint venture or cooperation. Investment: ¡ç3.34 million.

27. Recreational facilities. They will be built in the city's only park. Form: Solely foreign-funded, JV or cooperation. Investment: ¡ç6 million.

28. Liaohe Road and drainage. The Liaohe Road is one of Panjin's major roads. Form: Real estate development along the road. Investment: ¡ç60.6 million.

29. Shuangxing Road and drainage. The road is 10.5 kilometers long. Form: To be discussed. Investment: ¡ç24.1 million.

30. Waste water treatment. By 2001, the annual capacity will be expanded to 200,000 tons. Form: Joint venture or cooperation. Investment: ¡ç24.1 million.

31. Natural gas station. The station will be the first of its kind in the city. Form: Joint venture or cooperation. Investment: ¡ç2.4 million.

32. Pharmaceuticals. The annual production capacity will be 80 million tablets, 123 million capsules and 24 million pills. Form: Joint venture or cooperation. Investment: ¡ç3.84 million.

33. Coextrusion profiles of plastic and steel. According to a survey, the demand for this product will be 2.13 million tons by 2010. Form: Joint venture and cooperation. Investment: ¡ç5.67 million.

34. Continuous blister nickel. It is a key material for high-quality batteries. Form: Joint venture or cooperation. Investment: ¡ç7 million.

35. Compound fertilizer. The production scale of compound fertilizer will be expanded. Form: JV or cooperation. Investment: ¡ç133 million.

36. THF and 1,4-butanediol (BDO) production. The product is widely used in the medicine industry. Form: Joint venture or cooperation. Investment: ¡ç30.3 million.

37. Polyacrylamide. It is applied to the oil field and biological en-gineering products. Form: JV or cooperation. Investment: ¡ç6.6 million.

38. Melamine production. To expand the annual production capacity from 6,000 tons to 18,000 tons. Form: JV or co-operation. Investment: ¡ç10 million.

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China's textile output value will grow 6.5% annually to reach 1,100 billion yuan (¡ç132.5 billion) by 2005, according to the target set recently by the industry for the next five years. Garment and textile exports are expected to reach ¡ç65 billion by 2005. Science and technology are expected to contribute more than 60% of the growth in output value, and energy consumption per 10,000 yuan (¡ç1,205) in output value will be brought down by 15%. To fulfill the target, China will adjust industrial structure in the coming five years. By the year 2005, the proportion of combed yarn will increase from 16% to 35%, that of knotless yarn from 28% to 50%. Meanwhile, the country will optimize the export products mix by increasing high-added value products and expanding the pro-portion of chemical fabrics and decorative and industrial textiles.

The industry will also speed up reform of state firms and make regional structural adjustments. Several textile conglomerates are expected to be established through capital reorganization. Large state-owned textile enterprises with backward equipment and redundant employees, which have no chance of getting out of the red, will be phased out. Medium-sized and small textile firms can strengthen cooperation with private and foreign firms through auction or transfer of shares. According to the State Textile Industry Bureau, textile firms in coastal cities will focus on production of brand name products and exports, while those in interior areas will be production bases for products for domestic sale or with ethnical flavor. Textile enterprises in western regions are being encouraged to invite foreign investment to speed up their development.

Boosted by a recovery of the world market and the government policy of encouraging exports, China's textile and garment exports hit ¡ç47.7 billion from January to November last year, exceeding the total of exports in 1999. However, industry experts pointed out that the lack of value-added textile products and design ability will hamper the sector's growth and increase in exports in the long run. A modern enterprise system with efficient management is also needed for most textile enterprises, state-owned enterprises in particular.

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Tianjin Economic Technological Development Area has set an ambitious goal to maintain its average annual economic growth rate of 20% during the 10th Five-Year Plan period (2001-05). The area plans to utilize total actual foreign investment of ¡ç6 billion during the five years. By 2005, the zone plans to raise the area's GDP to 63 billion yuan (¡ç7.6 billion). To achieve the goal, efforts are to be made to make better use of foreign investment, apply science and technology and strengthen trans-regional cooperation. The 33-square-kilometer de-velopment area, which was approved by the State Council in December 1984, is one of China's largest and first approved economic technolo-gical development zones. The area has developed into a leading development zone in terms of scale, economic efficiency and growth rate.

The area's GDP grew at an average annual rate of 26% during the Ninth Five-Year Plan period (1996-2000). The area's GDP is likely to reach 25.5 billion yuan (¡ç3.1 billion) by the end of 2000, accounting for 16% of Tianjin's total. The area is home to many foreign companies including Coca Cola, Pepsi-Cola, Honeywell, Yamaha, Matsushita and Nestle. 25 of the world's top 100 industrial enterprises have invested in the area. The success is mainly due to excellent infrastructure facilities, a streamlined and effective government and emphasis on rule by law. Foreign investors sometimes complain about government bureaucracy in approval procedures and other affairs. But it is not the case in the Tianjin development area. Great efforts have been made in creating a soft investment environment in line with international practices. The area has set up a co-ordination team for construction projects, a tax registration center and an inspection center for exported and imported goods.

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China's nuclear industry has shown massive development in the Ninth Five Year Plan period (1996-2000), according to the China National Nuclear Corporation, the sole state-owned nuclear conglomerate. Nuclear electricity generation, nuclear fuel and nuclear technology application have become the three pillar sectors of the corporation. China's nuclear power industry has gathered steam during the period. The company has seen its output value increase by 90.6% from 1995 to the end of 2000. During the same period, its imports increased 7.7 times and its exports increased by 37.2%. China's first nuclear power plant, the 300-megawatt Qinshan Nuclear Power Plant in Zhejiang Province, has generated 11.6 billion kilowatt hours of electricity from its commencement of commercial operation in 1994 to the end of 2000, posting a total output value of 3.2 billion yuan (¡ç387 million). The Dayawan Nuclear Power Plant in Guangdong Province, with a combined capacity of 1.97 million kilowatts, has contributed 83.4 billion kilowatt hours of electricity to Guangdong Province and Hong Kong in its six years of commercial operation. Along with its successful operation of domestic power plants, China is also ranked among the major exporters of nuclear power technology, with the 300-megawatt Chashma Nuclear Power Plant in Pakistan built by China beginning full-power operation last August. At present, the company is sparing no effort to reduce dependency on foreign suppliers for its nuclear power plants. It hopes to see 75% of its equipment made locally in five years.

The country will strive to launch new nuclear power projects in the next five years. The company has already proposed a CNP1000 plan (China Nuclear Power Plant of 1,000 megawatts), which aims to establish a completely domestically manufactured nuclear plant of 1,000-megawatt capacity before 2005. Currently four nuclear power projects, with a total installed capacity of 6,600 megawatts, are under construction in China. They are the second and third phases of the Qinshan, Ling'ao nuclear power plants in Guangdong Province and the Tianwan Nuclear Power Plant in Jiangsu Province. With these plants in commercial operation, China's total installed nuclear power capacity is expected to reach 8.7 million kilowatts by 2005. To help ease the energy bottleneck, China began developing its nuclear power industry in the late 1980s. With a total installed capacity of 2,100 megawatts, the two nuclear power plants--Qinshan and Dayawan--produce around 14 billion kilowatt-hours annually, or 1% of the country's total power output, much lower than the 17% average for nuclear as opposed to conventional power for advanced countries.

China is also set to speed up efforts to fuel the growth of the radiation technology sector in forthcoming years in a move to promote the peaceful application of nuclear energy. Radiation technology, a high-tech sector that has extensive applications in areas like health care, pharmaceuticals, new material manufacture and environmental protection, will be at the top of the agenda for the country's development plan in the new century. As a booming industry in recent years, the radiation technology will underpin rosy growth potential in the Chinese market due to huge potential demand and the rapid development of technology in recent years. So far, the radiation sector in China's market has reached annual production capacity of more than 1 billion yuan (¡ç121.21 million), representing a very small segment of the market compared with its share in developed countries. Apart from policy support, the Chinese radiation sector will also enhance technology exchanges with international counterparts. China's radiation sector will realize an annual turnover of 10 billion yuan (¡ç1.2 billion) within five years. China will also endeavor to promote the commercialization of research and the application of technology rather than make it a direct government-funded sector. Experts say that radiation technology is expected to generate more extensive uses in areas like new materials and environmental protection in the new century.

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The BASF-YPC (Yangzi Petrochemical Corp) Company Ltd recently awarded a ¡ç400 million contract to the US-based Shaw Group, the world's leading supplier of fabricated piping systems, for the construction of its 600,000-ton-per-year ethylene plant. BASF-YPC, a joint venture worth ¡ç2.6 billion launched by the China Petroleum and Chemical Corporation (Sinopec Group) and Germany's BASF AG last December in Nanjing, is the nation's second largest foreign-funded petrochemical complex after the CNOOC and Shell Petro-chemicals Co Ltd based in Guangdong, whose annual production capacity of ethylene reaches 800,000 tons. The construction is set to start next year and to be completed in 30 months.

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Swiss-based Agie Charmilles Group, one of the world's leading suppliers to the tool and mold-making industry, announced the opening of its first wholly-owned venture in China recently. The newly launched sales and service company, Agie Charmilles China (Shanghai) Ltd, is to meet the increasing demand for machine tools in the eastern China regions. Located in the Waigaoqiao Free Trade Zone in Pudong, the company will also engage in exports and imports of Agie Charmilles products in China. The company will continue to expand its business in China and offer domestic customers a complete product range from high-end to entry machine tools. So far, Agie Charmilles has invested about ¡ç40 million in China.

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The first medium-sized Coaster buses, the first Toyota vehicles made in China, have recently come off the production line of the Sichuan Toyota Company, a joint venture between China and Japan and the first complete vehicle production project of Toyota in China. The joint venture, called the Sichuan Toyota Automotive Co Ltd, was established by joint efforts of the Toyota and the Sichuan Travel Van Plant as the first Coaster bus production plant set up by Toyota in other countries. Based on a plan, the joint venture will produce 3,000 buses in 200l and increase to 10,000 in 2005 to outstrip the output in Japan. The company's 23 sales outlets in the country are expected to start sales of Coaster buses in April this year.

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