Joint ventures and private enterprises will continue to drive social and economic development in this modern city in East China's Jiangsu Province in 2005, sources with the city government said.

As a rapidly developing city in the Yangtze River Delta, Changzhou's private sector flourished last year and the city saw an increased inflow of foreign capital.

Statistics show that revenue from private enterprises made up 72.6 per cent of the city's total industrial growth in 2004, with 8,586 new companies and factories being established.

"The fast and steady growth of private enterprises can be attributed to preferential policies and the proper working of the country's market economy," said Xu Jianming, mayor of Changzhou.

In comparison with the city's older private enterprises, the new players are mainly high-tech industries focused on new materials, IT, electronic machinery and biochemistry, typically with registered capitals of more than US$1 million.

Overseas capital has been playing an important role in the city's development since the late 1980s and its influence grew massively last year.

In 2004, another four Fortune 500 companies, including Texas Instrument and Wal-Mart, joined the previous 24 to invest in the city. Of the project agreements signed, 129 involved an investment of over US$10 million.

Last year's total contractual overseas investment reached an unprecedented US$2.2 billion, an increase of 8 per cent over 2003.

It is the city's favorable location and quality workforce that drew the eyes of these foreign investors.

"Joint ventures and private enterprises have contributed greatly to the gross national product of the city and we will continue offering the best services to aid their growth," said Xu.

The city government has also made plans to attract more foreign funds by providing co-operative opportunities for about 100 projects in the high-tech, infrastructure, tourism, and real estate sectors.

Source: China Daily