Hi-tech Grows into Shenzhen's First Economic Growth Area

Li Zibin, mayor of Shenzhen, China's first special economic zone bordering Hong Kong, said that hi-tech sector has become the city's first economic growth area. He told the three-day China Business Summit on April 18 that Shenzhen reported 82 billion yuan in hi-tech products in 1999, accounting for 40.5 percent of its total industrial output, 46.8 percent of which had independent intellectual property rights. Rapid development of hi-tech has helped Shenzhen restructure its economy, and greatly improve its economic performance and market competitiveness, Li said.

The city has been focusing on electronic information, bio- engineering, and new materials. It has established cooperation in research and development with more than 130 universities and research institutes across China.

Meanwhile, Shenzhen has sped up efforts to set up a risk investment mechanism in a move to improve fund-raising environment for hi-tech development. Overseas risk investment companies have injected over 100 million U.S. dollars in the city.

Private hi-tech businesses are also booming in the city. Statistics show that some 10 percent of the city's small and medium-sized hi-tech firms are privately funded, contributing 22 percent to Shenzhen's hi-tech output.

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