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Shenyang uses US$1.47b foreign funds
(Xinhua)
Updated: 2004-11-28 09:51

Shenyang, capital of Liaoning Province, used US$1.47 billion worth of foreign funds in the first 10 months, up 52.9 percent from a year earlier, which the city authorities attributed to the government policy to rejuvenate the "rust belt" in Northeast China.

Enterprises of the Republic of Korea led other foreign companies in investment in the city by putting in US$390 million in the 10 months. Some of the world leading companies such as Philips, Panasonic, Sanyo and BASF also found foothold in the city.

Shenyang approved 38 foreign-funded projects each involving more than US$10 million  in investment in 10 months, according to the bureau of foreign trade and economic cooperation.

Covering the provinces of Heilongjiang, Jilin and Liaoning, thenortheast China region contributed tremendously to the country's industrial development in the 1950s to early 1970s. However, many of the traditional industrial companies founded under the planned economic system have lost their competitive edge since the country opened-up. The ratio of the region's industrial output value to the national total dropped from 17 percent to 9 percent.

The Chinese government decided in early September last year to turn those outdated, lagging industrial centers into modern industrial bases. With the help of foreign investment, China hopesto make them new and essential growth areas of the national economy.

Against this backdrop, Shenyang has become a hot spot for business people from both home and abroad, said Zhen Zhenggao, mayor of Shenyang. The annual passenger flow through the Shenyang-based Taoxian International Airport increased rapidly and local hotels reported occupancy rate of 80 percent.

The city's export for the first 10 months surged by 18.2 percent year-on-year to hit US$1.85 billion. Major export markets cover the Republic of Korea, Japan, Russia, Southeast Asia,the Middle East and countries in Europe, America and Africa.

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