REGIONAL> Development
Dalian plans industrial upgrade
By Xiao Yu (China Daily)
Updated: 2009-03-16 07:36

Liaoning province's coastal city of Dalian will reform and upgrade its industrial structure to stave off the deepening global financial crisis' impacts.

The city's 2008 GDP was estimated to have reached 385.8 billion yuan ($56 billion), a 16.5-percent year-on-year increase.

It also achieved 251 billion yuan in fixed-asset investment, a 30 percent year-on-year increase.

In addition, urban residents' average per-capita disposable income rose 15.8 percent during the period to 17,500 yuan. The average rural per-capita net income increased 17.3 percent to 9,818 yuan.

Dalian plans industrial upgrade

Dalian's mayor Xia Deren told China Daily: "We set the GDP growth target at 14 percent this year and will make great efforts to ensure the country's 8-percent GDP growth."

To this end, Dalian plans to support industries in which it enjoys competitive advantages, Xia said.

The software industry has become a backbone of Dalian's economic growth over the past decade. The city has attracted more than 200 foreign software firms, including 40 of the "top 500 in the world".

By 2012, the city will increase the number of software firms to 2,000, including five leading enterprises with more than 10,000 employees, Xia said.

With sales revenues of 70 billion yuan and more than 200,000 employees, Dalian would become China's first software base. It is expected to reach international levels of scale and comprehensive industrial strength by 2017, when it could become China's silicon valley, Xia said.

In addition, Dalian will construct a large-scale integrated circuit production base.

Semiconductor giant Intel Corp is expected to expand its $2.5 billion investment in Dalian. It announced plans in March 2007 to build a 300-mm wafer fabrication facility, the company's first wafer facility in Asia.

In addition, the city is striving to construct globally leading bases for equipment manufacturing, shipbuilding, ocean engineering, petrochemicals and an international logistics.

In the spirit of the country's 4-trillion-yuan stimulus plan, Dalian will construct China's largest wind-power and nuclear-facility manufacturing bases.

The city also aspires to become an international airline hub and bonded port area.

"This will be developed into a highly internationalized metropolitan zone and the center of Liaoning's opening-up," Xia said.

Last year, Dalian's actual realized foreign investment totaled more than $5 billion, a 58.6-percent year-on-year jump. Its three major sectors - equipment-manufacturing, hi-tech and service - attracted more than 80 percent of the total foreign capital, Xia said.

Dalian will work this year to carry out its "walk out" strategy in which the local government will assist the city's enterprises to capitalize on their strengths and compete in international markets.

"Previously, we were honed in on the US and European markets, but now, we are switching our focus to Japan, Republic of Korea, the Middle East and some other emerging markets to ensure the city's export growth," Xia said.

During the financial crisis, Dalian will improve enterprises' innovation and optimize the industrial structure to raise international competitiveness, he said.

(China Daily 03/16/2009 page2)