Local governments court technology firms to boost economy

While many technological firms were hit hard by the global economic downturn, they may benefit from the 3G ambitions of many Chinese local governments.

The authorities in major Chinese cities such as Beijing, Chongqing and Hangzhou are trying hard to attract investment from telecom carriers, chip makers and handset vendors in an effort to give a shot in the arm to the local economy.

"We want to create in the city a Chinese silicon valley for the mobile industry," said Gou Zhongwen, vice-mayor of Beijing. He said the local government plans to make the telecom industry a new economic engine for the capital in the next three to five years.