"We aim to consolidate the city's role as the largest information technology (IT) production hub in the country and improve research and development in the coming five years," said Li Jinwei, Party secretary in Dongguan.

Benefiting from the speedy development of neighboring cities Guangzhou and Shenzhen, Dongguan has seen spectacular economic progress in recent years, and has built up a diverse and strong manufacturing base, luring investors from across the world.

The city has been particularly successful in attracting investors from Taiwan and Hong Kong, who are the main driving force behind its economic development.

"When people speak of the historical city of Dongguan today, they imagine various products, ranging from clothes and shoes to IT products," Li said.

According to customs figures, the city exported US$17.1 billion worth of goods last year. High-tech products alone amounted to US$7.6 billion, accounting for 44 percent of total exports.

Dongguan has become one of the busiest garment, toy, furniture, shoe, sports goods and computer production bases in the country, Li said.

For example, in the IT industry alone, the city makes products such as keyboards, mice and main boards which make up more than 80 per cent of those products produced nationally.

Though Dongguan has a strong IT manufacturing base, Li admitted the city was not strong in developing new products.

"We do not want to play second fiddle to foreign IT designers," Li noted.

The city government will establish a university zone consisting of a number of colleges with initial investment of 2 billion yuan (US$241 million) to quench its thirst for skilled people.

Covering 20 square kilometers, the zone has already signed agreements with 28 eminent universities nationwide, such as Tsinghua University and Zhongshan University.

Currently, Shenzhen and Zhuhai, two special economic zones adjacent to Dongguan, are also building university zones. Guangzhou, capital of the Guangdong Province and home to many famous universities and institutes, is also trying to attract more skilled workers.

"Competition is everywhere and we are always ready for it," Li said.

It is better to carry out research and innovation near manufacturing plants, he pointed out.

Dongguan will co-operate with neighboring cities in all fields, he stressed.

(China Daily 03/23/2001)