Li Zibin, vice-director of the Western Region Development Office of the State Council, said there will be a marked upgrade of all laws concerning foreign investment during the next five years. This will form the central effort to lure foreign capital to the year-old economic programme.

The official, who would not reveal precise details of the scheme, said the issue is urgent in the hinterland as foreign capital is essential to bring the west out of economic stagnation and bridge the wealth gap with the coastal areas.

"Many industrial giants in the US and Europe have told me they are really concerned about the laws, red-tape and efficiency," he said.

Li's words were a wake-up call for hinterland officials who have been criticized by analysts for indulging too much in tax cuts and policy rewards from Beijing while not looking to upgrade legal administrative processes.

That issue is expected to get another boost at the second Western Forum of China, the highest-level workshop of the go-west campaign which opens today and will end on Friday in Xi'an, the capital of northwestern China's Shaanxi Province.

Senior officials, local provincial chiefs and experts will join talks with foreign investors already cashing in on the economic rejuvenation of the west, including world big names like IBM, HP, Alcatel.

Issues such as law, market access, new investment and business entry will be spotlighted at the meeting.

(China Daily 09/04/2001)