China's vast inland areas will undoubtedly give powerful backing to Macao's economic growth as its smooth return to the motherland is expected to bring new development opportunities.

The Ministry of Foreign Trade and Economic Cooperation (MOFTEC) has recently taken measures to promote trade and economic cooperation between Macao and inland areas, including investment, business, and scientific and technological exchanges.

The healthy economic growth and increased national strength of China constitute the strongest backup force for the Macao region, whereas the huge market and wide-ranging business opportunities in the inland areas provide the greatest potential for the economic development of Macao, said An Min, assistant minister of the MOFTEC, at a recent seminar.

Macao relies heavily on external assistance due to scanty domestic demand and resources. However, it has its own unique advantages in location, foreign contacts, industries and cultural heritage.

Economic cooperation between Macao and the inland areas has maintained an upbeat momentum since the reform and opening-up drive launched in China in 1978, with the latter providing raw materials, labor force, farm produce and by-products, as well as capital to the former. And Macao in turn serves as a major channel for the inland areas to attract foreign investment and obtain economic and technological information from across the world.

Statistics show that by October Macao had invested in 6,357 projects in the inland areas, involving 9.17 billion US dollars worth of contracts, ranking 10th among overseas investors. And the inland areas have become Macao's largest exporter and entrepot trade destination, fourth export market, and its largest external investor.

Inland-funded enterprises, for example, have made up half the sectors of Macao's banking and insurance, tourism and hotel, and real estate, totaling approximately 100 billion yuan worth of assets.

The inland areas provide Macao with almost all fresh water, liquefied petroleum gas, and a large amount of electricity and fuels. Everyday, the inland areas ship 192 tons of fresh goods via Zhuhai to Macao to facilitate Macao's economic development and residents' life.

The reform in the inland areas has greatly benefited Macao's economic prosperity, enabling the region to edge into the world's fastest economic increases, Prof. Xu Yamin of the Beijing University said, adding that the two sides still have potential in economic reciprocity.

After Macao's return, nongovernmental exchanges will be further strengthened and government-oriented cooperation will also play a bigger role, which will make the two sides more supplementary to each other in the world market, the MOFTEC official said.

Edmund Ho Hau Wah, Chief Executive-designate of the Macao Special Administrative Region (SAR), has repeatedly said that the post-handover Macao will focus on cooperation with the inland areas, the neighboring Guangdong Province in particular, where the Macao SAR is to set up a permanent office.

Hong Kong, which has benefited from the inland areas in fighting the Asian financial turmoil, is looking to the tripartite cooperation. Tung Chee Hwa, Chief Executive of the Hong Kong Special Administrative Region, has suggested to establish an economic coordinating zone among Hong Kong, Macao and Guangdong.

Guangdong and Macao have increased police cooperation in striking cross-border and gang crimes in a bid to improve Macao's public security.

The Guangdong, Hong Kong and Macao Triangle tourism project, started in 1993, has developed a comprehensive tourism destination that transcends different social systems and life styles. Now the three sides are aiming to turn the Triangle a world-level tourist center.

Other inland provinces and cities like Fujian, Beijing, Shanghai and Chongqing are also planning to expand cooperation with Macao. Economists predict that Macao, backing by the motherland, will surely step into a rapid-growth period after two or three years of recovery and readjustment.