The vast western areas are expecting an influx of government funds and overseas capital in the coming years as China takes "bolder steps" to spur the landlocked region's development.

Zeng Peiyan, minister in charge of the State Development Planning Commission, says that China will take actions as bold as those in establishing its special economic zones when it comes to the accelerated development of those areas.

The region will gradually become China's new economic powerhouse, economists here say. "It's only a matter of time."

Chinese leaders have their minds set on turning the resources- rich areas into prosperous economic zones in the next century. President Jiang Zemin said earlier this year "the development of the western region must be carried out in a daring and resolute manner."

The western region involves 10 provinces and autonomous regions (including Chongqing Municipality), covering some 56 percent of China's territory and accounting for 50 percent of verified deposits of minerals.

China has witnessed remarkable economic achievements since initiating the reform and opening-up policy in 1979. However, its western region has not enjoyed the same degree of prosperity as her eastern counterpart.

Economic analysts say that if the central and western regions do not catch up with regions in the east, China's goal of becoming a medium-level developed nation by mid next century will not be fully realized.

In the past few months, top Chinese leaders have paid frequent visits to various western provinces and regions to study the economic situation and advise on regional development.

Reliable sources disclose that various departments under the State Council have started formulating policies and plans for the development of the western region.

With regard to capital, policies and state-funded projects, the central government will surely give preferential treatment to the western region, the sources say. "The government will also adopt a series of incentives to attract both domestic and overseas investment and talents."

The State Taxation Administration is said to be working out new tax incentives for overseas-funded enterprises in China's western region.

Minister Zeng says China will speed up construction of highways, railways, airports and water conservancy projects to facelift the region's infrastructure.

As China enters a new period of building the socialist market economy, the western region faces fiercer market competition than during the early stages of reform and opening up in the late 1970s and early 1980s.

"Officials and people there should first broaden their minds and fully embrace the notion of economic reform," some experts suggest.

Other experts believe that the stable social and economic situation in China today has created favorable conditions and provides ample opportunities for the region to boost its development.

Local officials in the region have invited economists and other experts to help them to work out regional development plans.

"The next ten years are crucial to the economic development of Shaanxi. The province hopes to spearhead the drive for economic reforms," said Li Jianguo, Party secretary of northwest China's Shaanxi Province.

Observers here say once the western region takes off, China's economic strength will surely take a remarkable leap.