He predicted an average annual growth rate of 9 percent for the province's gross domestic product (GDP) during the 2001-05 period in his report delivered yesterday to the provincial legislature - the People's Congress of Liaoning Province.

"It remains our central task to revitalize the overall economy of the province, and to do this, we will make strenuous efforts to promote the development of large and medium-sized State-owned enterprises (SOEs) in the next five years," said Bo.

As a heavy industrial base with one-tenth of the country's SOEs, Liaoning has successfully implemented the central government's three-year strategy to revitalize most of its large and medium-sized SOEs.

Profits from SOEs increased five-fold to 11.75 billion yuan (US$1.42 billion) last year, but 30.8 per cent of the province's SOEs are still in the red, according to Pei Zhiyuan, director of the Liaoning Statistics Bureau.

"A number of SOEs are still in danger," said Bo.

The province will help 50 of its SOEs list on the domestic and foreign stock markets, and 200 SOEs will seek overseas partners in the next five years.

About 100 SOEs that have continually failed to reform will be closed down and 600,000 extra workers laid off before 2005, said Bo.

The province's best industries, including the petrochemical, iron and steel, automobile and shipbuilding industries, are expected to grow at a high speed.

"The high-tech industry will be another major economic growth point in the province," said Bo.

The province has set a goal of 30 percent for the high-tech industry's annual growth rate during the 2001-05 period.

The high-tech industry yielded an output of 100 billion yuan (US$12.05 billion) last year, up 29.8 percent from the year before.

According to the Liaoning government's work report, the output of information, new materials, biological engineering, pharmaceuticals and advanced technology industries will double by 2005.

A total of 200 billion yuan (US$24.1 billion) will be put into technical renovation in the next five years. About 40 large-scale technical innovation projects will be initiated for the province's best and high-tech industries.

Bo also pledged that Liaoning, as a coastal province, will go all out to attract more foreign investment during the 10th Five-Year Plan period.

Foreign funds will be welcome in Liaoning's pillar and high-tech industries, agriculture, infrastructure construction, environmental protection and service industries.

Total foreign investment and exports from 2001 to 2005 are expected to top US$18 billion and US$80 billion respectively, both up 70 percent compared with the Ninth Five-Year Plan period (1996-2000).

High-tech products will make up 35 percent of the province's total exports by 2005.

(China Daily 02/19/2001)