China to invest US$9.64b in western region
(Xinhua)
Updated: 2004-10-14 11:06

Li Zibin, deputy director of the Office of the Leading Group for Western Region Development of the State Council made the remarks at a press conference in Beijing Thursday.

He said key projects in the western region have been further strengthened. In the first half of this year, the west-to-east electricity transmission project newly installed 600,000 kw of power-generating capacity and increased 2,400 kilometers of transmission lines. The pipeline for transmitting natural gas from the west to the east was completed ahead of schedule. Highways open to traffic were extended by about 6,000 kilometers. Nearly 60 percent of investment of the key water control projects were completed.

He said by the end of August, the main track of the Qinghai-Tibet Railway had been extended by 232.6 kilometers this year.

Li said West China would create a better business environment for overseas investors.

Though foreign direct investment (FDI) flowing into West China now accounts for a mere 4 percent of the country's total, Li expressed his optimism about the future of the FDI in western regions.

He said that west China is rich in energy, tourism and mineral resources and its transport and telecommunications conditions are improving.

"These will give investors good returns and create a 'win-win' situation," he said.
China posted an increase of 18 percent in combined FDI in the year through August. Li said the FDI figure was expected to reach US$60 billion in 2004.

The country has been allocating a majority of loans from foreign governments and international financial organizations to the development of its poor but vast western part, according to Li.

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