China will provide policy and funding support for its hi-tech sectors and encourage companies to cooperate with overseas partners, a top official said.

The mainland will also support technological cooperation with Hong Kong, Zhang Xiaoqiang, vice-director of the National Development and Reform Commission, said.

The State said it will increase such support and welcomed international cooperation.

Shenzhen-based electronics manufacturer TCL, for example, is eager to work with overseas partners to make 7.5G or 8G LCD screens, Zhang said.

Areas that will receive State support include sectors such as integrated circuits, third generation (3G) telecommunication technology, biomedicine, new materials, aerospace, hi-tech services, marine industry and updating traditional industries through high technologies.

Zhang said the State will earmark huge funds for major scientific and technological developments in the period between 2006 and 2010.

The commission will put in 6 billion yuan (US$789 million) for 12 major projects, including marine scientific investigation. Another 4.8 billion yuan will be earmarked for innovation-oriented projects in the Chinese Academy of Sciences.

An additional 2 billion yuan will be used to finance the establishment of 100 State-level engineering labs, update 50 State-level engineering centers and help set up 300 corporate technology centers.

While cooperating with foreign partners, domestic firms must strengthen their ability to develop core technologies. "Some core technologies cannot be purchased, even if you have the money," Zhang said.

(China Daily September 28, 2007)