China's leading industrial city of Shanghai has set its information technology (IT) industrial output value at 100 billion yuan (about US$12 billion) this year, aiming to make the sector, along with automotives, its top two industries.

The city generated 80 billion yuan 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 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.