An agency is generally an intermediary company that provides professional advice and services, such as accountants, law firms, public relations agencies and so on.

The development of science and technology agencies in Beijing will help promote the city's knowledge-based economy, concluded a draft proposal of the Beijing Municipal People's Political Consultative Conference on Tuesday.

The draft proposal calls for the local government to draw up more favourable policies to promote the development of science and technology agencies in the city.

The draft proposal is expected to be submitted to the 26th session of the Ninth Beijing Municipal People's Political Consultative Conference for approval today.

Based on a survey of science and technology agencies, which was conducted by the Economy and Science Committee of the advisory body and other four institutions last September, the draft proposal highlights the importance of technology and personnel markets for the city's economic development.

Beijing's technology exchange market ranks one of the country's most dynamic markets, with a contract volume of business that reached 10 billion yuan (US$1.2 billion) last year and covered 21 per cent of the nation's total technology contracts, the survey said.

The development of science and technology agencies has become the city's new economic growth point in recent years, said Zou Zuye, director of the Economy and Science Committee.

As an important part of the service industry, the agency sector will greatly promote the development of a market economy, Zou said.

Beijing has promoted the agency sector in recent years, especially focusing on high-tech specific agency services including technology, personnel, consulting, scientific research and financing agencies.

The newly launched 10th Five-Year Plan (2001-05) for Beijing has hailed the development of science and technology agencies as the most important part of the service industry for the next five years.

Although an increasing number of complaints about agencies have been received in recent years, the role agencies play in the market economy cannot be neglected, Zou said.

"A market economy cannot take off without the booming development of the agency sector,'' Zou said. "Stable market order needs the support of a complete and standardized agency sector.''

Beijing established its first science and technology consulting company in 1979, the first agency company in the city. Currently, thousands of agencies have been established, creating a service network that has helped secure the pace of the city's economic development, Zou said.

(China Daily 05/30/2001)