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China's west attracts US$38b investment from east

(Xinhua)
Updated: 2006-12-21 15:55

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Firms based in the east of China have invested more than 300 billion yuan (US$38 billion) in western China, Fu Ziying, assistant minister of Commerce, said inBeijing on Wednesday.

The 10,000 East China-based enterprises include state-and private-owned enterprises as well as foreign companies, Fu said at a press conference at the 11th ChinaChongqingInvestment and Global Sourcing Fair (CCISF).

Abundant resources, preferential policies, and cheap land and labor in the region spelt opportunities for investors. The rapid expansion of manufacturing, high-tech, power, and tourism industries in the region has added to its attractiveness.

The CCISF, held every two years, promotes trade and investment in west China. It is a platform that allows the western region to seek investment from outside, according to Fu.

The 11th CCISF will be held between April 18-21, 2007 in Chongqing Municipality, focusing on the theme of "Global sourcing and investment".

China launched the western development program in 2000 to narrow the economic gap between the region and the country's east.

In 2005, the region generated a total of 3.37 trillion yuan in gross domestic output, up 12 percent on 2004, significantly higher than the national average of 9.9 percent.