Harris Diamond forecast that by 2007, half of the New York-based company's clients in China will be Chinese firms, compared to 20 percent now.

"The ongoing restructuring in Chinese industries and China's 7-percent annual economic growth give us opportunities," he said, adding that domestic companies will need promotion and communications services.

"For Shanghai, demand will come from such industries as finance and consumer products, while in Beijing our services will be popular among information-technology companies."

Diamond said the 2008 Olympic Games that will be held in Beijing means a huge opportunity for international public relations firms.

"It wouldn't be surprising that various companies will spend a total of US$5 billion on promotions during the Games, doubling the amount expected to be spent by official sponsors," he said.

Diamond said Chinese clients should realize that public relations activities involve not only media promotions but also the company image and relations with govern-ment and communities.

He said Weber Shandwick aims to tap the huge market potential outside big cities, but has not yet chosen the areas for its expansion drive.

"Now, it's proper to extend services to China's inland," he said.

Last year, Weber Shandwick merged with BSMG Worldwide to form the world's largest public relations company with an annual income of US$500 million.

(eastday.com January 30, 2002)