China will invest a total of 80 billion yuan (US$9.638 billion) in ten more key projects in the western region by the end of the year.

Li Zibin, deputy director of the Office of the Leading Group for Western Region Development of the State Council, made the remarks at a press conference in Beijing.

He said key projects in the western region have been further strengthened. In the first half of this year, the west-to-east electricity transmission project installed an additional 600,000 kilowatts of power-generating capacity and increased 2,400 kilometers of transmission lines. The pipeline for transmitting natural gas from the west to the east was completed ahead of schedule. Highways open to traffic were extended by about 6,000 kilometers. And nearly 60 percent of investment of the key water control projects were also completed.

He said by the end of August, the main track of the Qinghai-Tibet Railway had been extended by 232.6 kilometers this year.

Li said that cooling down some overheated industries will not affect the state's strategy for boosting economy in the western region.

The central government will continue giving priority to investment in the western region as well as the traditional industrial belt in northeast China, he said.

"The macro-control measures did not slow down development of the western region and the intensity of western region development has not been reduced," said Li, also vice minister in charge of the State Development and Reform Commission.

While cooling down some overheated industries, Li said, the state gives full support to agriculture, energy, transportation, water conservancy, infrastructure construction, education, health, science and technology, culture and other social undertakings.

However, Li acknowledged that repeated low-level construction of some small electricity-generating plants, coke refineries and cement factories, continued to unreasonably consume energy and brought about heavy pollution.

"These problems will do great harm to our national economy," Li said.

The current state policy on economy will distinguish different industries and treat them accordingly, some protected whereas some suppressed, Li said.

In further developing the west region and attracting more overseas funds, Li said, the 2004 China Western Forum will be held on November 18-19 in Nanning, capital of the Guangxi Zhuang Autonomous Region.

Li said west China would create a better business environment for overseas investors.

Though foreign direct investment flowing into west China now accounts for a mere 4 percent of the country's total, he expressed optimism about future FDI into the western region.

He said west China is rich in energy, tourism and mineral resources and its transport and telecommunications infrastructures are improving.

"These will give investors good returns and create a 'win-win' situation," he said.

The economically backward western part of China has witnessed a strong growth momentum so far this year, Li said.

Each of the ten other provinces, municipalities and autonomous regions in west China, excluding Guizhou and Tibet, logged economic expansion rates of more than 12 percent in the first half of the year.

And the rate of Inner Mongolia hit 18.7 percent, the highest in the country, he revealed.

(Xinhua News Agency October 15, 2004)