The first state-level high-tech industrial development zone in western China will be built in Shaanxi Province, the starting point of the Silk Road, the world-renowned ancient trade route.

The Ministry of Science and Technology approved plans for the high-tech industrial zone at Guanzhong Plain at the end of last month, according to official sources.

This is the second state-listed high-tech development zone in China. The first was established in east China's Jiangsu Province in the early 1990s.

The move indicates that China's strategy of speeding up development of western China has entered a stage of substantial growth, said Li Zhongmin, Doctor of Economics at the Northwest China University.

Li said new technology was to play an extremely important role in boosting development in western China, in much the same way as it took off in California in the United States decades ago.

The high-tech development zone, described as the "Silicon Valley" of western China, is to follow the pattern of Guanzhong New and High-tech Industrial Zone which took shape a decade ago. The formation of the zone is sure to accelerate scientific development and encourage economic development in surrounding areas, according to local economists.

To date, the 40,000-square-kilometer (15,444-square-mile) high-tech industrial zone around Xi'an, capital of Shaanxi, is dotted with enterprises in the fields of electronic information, software, pharmaceuticals, bio-technology, new materials, environmental protection and aerospace.

The output value of industry, trade and commerce generated by the region is expected to reach 56 billion yuan (US$6.8 billion) this year.

Sun Haiying, director of the Shaanxi Provincial Department of Science and Technology, said upgrading the zone would make it possible to optimize use of resources in the region and would havea strong appeal to overseas investors.

The central government is expected to work out concrete policies and measures soon to assist development of the high-tech industrial zone, according to Sun.

As early as in the 1950s, China began to establish a number of industrial and high-tech projects in western China including aircraft-manufacturing, aerospace and nuclear bases.

Establishment of the high-tech industrial zone in Guanzhong is regarded as the second revitalization of science and technology in western China.

There are now 90,000 scientists and engineers and 850,000 technicians working with 1,000 research institutes and 50 colleges located in the zone.

( April 11, 2002)