Shanghai has set its information technology (IT) industrial output value at 100 billion yuan (about $12 billion) this year, aiming to make the sector, along with automotive, its top two industries.

The city generated 80 billion yuan ($9.64 billion) in output value from the IT industry in 1999, an increase of 23.8 percent on a yearly basis.

An official with the municipal government said that accelerating the development of the IT industry is a major step by the city to turn high-tech industries into key growth areas of the local economy.

According to the official, the combined output value of the IT industry, bio-pharmaceuticals and new materials will reach 150 billion yuan this year, accounting for 21 percent of the city's total industrial output.

Shanghai first decided to give priority to high-tech industries in 1995. By the end of 1998 these industries reported nearly 100 billion yuan ($12.05 billion) in output value, 16.5 percent of the city's overall industrial output the same year.

The city will focus on the development of major high-tech products including integrated circuits, telecommunication equipment, computer and software products, digital audio and visual products, new medicines, and rare-earth metals.