Industries, such as information technology, automobiles, steel, petrochemicals, power and ship-building, will be enlarged through the injection of foreign capital.

Local industrial officials said these industries would be a strong stimulus to the city's economic development in the new century.

According to a report from the Shanghai Economic Commission, projects worth about 450 billion yuan (US$54.2 billion) will be launched to push forward the establishment of these industries.

"When these key projects are completed, the local industries will be able to challenge the world's best after China's entry into the World Trade Organization," said the report.

Under the blueprint, the city's industries will account for one-10th of the nation's total industrial output value by 2005.

The commission has decided to invest 360 billion yuan (US$43.4 billion) in the next five years to develop the city's six new pillar industries.

The heavy investment will enable these industries to generate 70 percent of the city's total industrial output value by the end of 2005.

The city has designated electronic information as its first pillar industry and pledged an investment of 150 billion yuan (US$18 billion).

"The huge funds will promote the development of the city's integrated circuits, computers, software and other telecommunication products," the report said.

By 2005, its combined output will amount to 270 billion yuan (US$32.5 billion) with six integrated circuit production lines to be built.

The report said the city would further restructure its industrial layout to echo the huge investment scheme. "New ways will be found to introduce foreign capital," the report said.

In each of the next five years, the commission plans to attract 20 to 30 billion yuan (US$2.4 to US$3.6 billion) for key projects.

Priority will be given to the further development of the Pudong New Area, in which 165 billion yuan (US$19.9 billion) will be injected to launch new projects.

The Zhangjiang High-Tech Park will become China's first-class software manufacturing and export base with 80 billion yuan (US$9.6 billion) invested to build integrated circuits and super-computer centers

(China Daily 02/05/2001)