With capital volume expected to reach 50 billion yuan (US$6.0 billion), new enterprises should be able to contribute at least 10 percent to Shanghai's gross domestic product (GDP) at that time.

The city also hopes to draw some 150 leading domestic companies into the city.

This target was revealed by Jiang Guangyu, director of the cooperation office under the city government, at a briefing over the weekend. The office's major function is to co-ordinate with provinces, municipalities and autonomous regions outside Shanghai to boost mutual development through various joint-operated programmes.

"Shanghai can turn out to be a well-designed stage for those out-of-town enterprises that want to show their appealing performance," said Jiang.

Such enterprises hold a strong foothold in the overall development of Shanghai, he stressed.

Despite its origin as a fishing village in the 11th century, the present metropolis of Shanghai has fostered a tradition of absorbing immigrants and resources that flux in from other parts of China and contribute to the prosperity of the city.

Official statistics indicate more than 20,600 businesses have so far been set up by Chinese enterprises from outside Shanghai with a total investment of 150 billion yuan (US$18 billion).

Quite a number of well-known domestic companies like the computer giant Legend, garment maker Firs and home appliances firm Chunlan have relocated their headquarters or regional headquarters based in the city.

Experts attribute the flow of enterprises into Shanghai to the city's reputation of being China's economic powerhouse, especially in sectors such as finance, trade and shipping.

The city also encourages local companies and institutions to become more involved in the development of other areas.

"Without the support of other areas in China, Shanghai would not have made so many achievements ," said Jiang. "It is therefore Shanghai's commitment to repay that as much as possible."

According to the city government's plan, Shanghai expects to initiate about 3,000 investment projects in the western regions of China by 2005, involving some 100 billion yuan (US$12 billion).

Echoing the country's Go-West campaign, the city earlier worked out a set of 17 policies as guidelines for local enterprises and institutions heading for vast underdeveloped western regions in China.

( April 29, 2002)