Beijing's actual foreign direct investment (FDI) reached US$2.5 billion in the first eight months of this year, up by 34 per cent year-on-year, said Beijing's Vice-Mayor Lu Hao.

The successful bidding for the 2008 Olympic Games is behind the rapid growth of the city's foreign investment, although China's total foreign investment dropped this year, Lu said at the ongoing 2005 China International Fair for Investment & Trade in the port city of Xiamen.

He said Beijing will make administrative procedures simpler and improve the communication system between the government and foreign investors to attract more overseas enterprises.

"The city will focus on areas such as modern services and high-tech," Lu said. "And foreign investment will play a very important role here."

Due to the limited land in the downtown area, he added that Beijing plans to develop the suburban regions, such as Daxing and Tongzhou districts.

Daxing is seeking foreign capitals to enhance its strength in bio-engineering and pharmaceuticals, added deputy head of Daxing District Pan Xinsheng.

However, the development of agriculture is slowing down in Daxing.

"Currently agriculture accounts for 13.1 per cent of the district's total GDP (gross domestic products)," Pan said. "It is predicted that the percentage will drop to 5 per cent by 2010."

Beijing's actual FDI hit a record high of US$3.08 billion last year, growing by 43 per cent year-on-year. The city's GDP grew by 13.4 per cent last year, the highest in the past ten years. In the first half of this year, its GDP grew by 10.4 per cent.

Source: China Daily