Chinese Vice-Premier Wu Bangguo emphasized innovation and high technological development during an inspection tour of state-owned enterprises (SOEs) and high technology companies in Shanghai from November 25 to 27.

In his visit to Shanghai General Motors, the largest Sino-US joint venture in China, Wu stressed that the importance of quality and called on local manufacturers to adopt strict quality control measures at every stage of production.

Wu also praised Shanghai General Motors for achieving a 40- percent initial localization rate of its Buick cars which have become hugely popular in China.

Wu also visited the Shanghai Huahong-NEC Electronics Corporation, the Yichang Thin Plate Company under the Baoshan Steel Company, the Shanghai Volkswagen Company and the new international airport in Pudong.

At Huahong-NEC, Wu commented on the progress of China's largest electronic project, which was completed in only 18 months. The company is expected to increase its monthly output to 10,000 pieces of super integrated circuits next month.

Wu pointed out that scientific and technological progress and technical innovation are the main forces involved in social and economic development. He said that continuous upgrading of technology is the key to expanding enterprises.

In Baoshan Steel Company, We emphasized that greater efforts should be made to develop and commercialize patented technologies in SOEs and said that technical personnel should be paid more and an effective incentive mechanism should be formed.

During his visit to the Passat Car production base of Shanghai Volkswagen, Wu said that local enterprises should increase their research and development while introducing advanced technologies from overseas.

Finally, Wu praised Shanghai for achieving a 9.9 percent economic growth in the first ten months of the year and said Shanghai should continue to accelerate SOE reforms. However, Wu also urged Shanghai to help develop backwardly economic regions in central and western China.