The rejuvenation of northeast China's rust-belt industrial bases remains a prominent subject at the Second Cooperation and Exchange Convention of Overseas Chinese Enterprises in Science and Technology Innovation, which was officially opened Sunday in Shenyang.

At present, foreign investment is growing rapidly in the northeast region, and the Chinese government welcomes foreign entrepreneurs, including overseas Chinese entrepreneurs, to help revitalize the rust-belt northeast.

The following is a snapshot of foreign investment opportunities in northeast China.

The policy of northeast revitalization is to introduce new technology to old industries, creating more opportunities for large international manufacturers.

Economists say now is the best time for foreign investment in the area because of its rich natural resources, well-formed industrial structure and solid material foundation for the

development of the chemical and heavy industries. Northeast China's well-developed highway, railway and waterway networks are additional advantages.

The three provinces border Mongolia, Russia, the Democratic People's Republic of Korea, and face across the water Japan and the Republic of Korea. This proximity helps border trade and distribution of Chinese commodities to these countries. Petroleum and coal reserves in the northeast are rich: 40 percent of China's petroleum reserve is in the Northeast, making it an important energy-supplying area for the country.

Human resources are key in ensuring the competitiveness of a region or enterprise, and the large proportion of skilled workers among the northeast's 107 million population is a big advantage.

China encourages foreign investment as a means to reform the state-owned enterprises (SOEs) in the northeast.

In July 2003, a Singaporean company purchased the Hualin Rubber Co., formerly the largest tire manufacturing company in China. This marked the first acquisition of state-owned equities by a foreign company.

Most industrial enterprises in northeast China have a solid industrial foundation, and so are easily revitalized once they get the necessary technology and funds.

When the Anshan Iron and Steel Company was on the brink of collapse several years ago, the Chinese government provided low-interest loans to buy the newest equipment. Within a short period, the company became a leading enterprise in steel production.

The world's five largest ship builders are using plates from the Anshan Iron and Steel Company, and the company has established a joint venture with the German enterprise ThyssenKrupp to produce galvanized steel plates. The joint venture absorbs the advanced

technology of ThyssenKrupp, and enables the German enterprise to expand its Asian market. Many of the customers of ThyssenKrupp, including BMW, Mercedes-Benz, Volkswagen and Porsche have plants in Asia and highly value Anshan-ThyssenKrupp's steel panels.

The improving investment environment is attracting more and more foreign investors to the northeastern part of China.

Prior to the year 2000, investment in Liaoning Province averaged 2.2 billion US dollars annually. Last year the figure rose to 5 billion dollars.

In the coastal city of Dalian alone, there are now more than 8,700 foreign-invested enterprises.

Economists believes that China's northeast revitalization strategy will turn the area into an international heavy industry base in the next 10 to 20 years, providing a great number of opportunities for overseas investment.