Guangdong Seeks Western Executives Advice to Boost Economy

Top executives from western countries met with Guangdong provincial leaders and CEOs from emerging Chinese high-tech enterprises Thursday to offer their suggestions on economic development in the south China province.

Guangdong provincial government's international consultation meeting has become an annual event after valuable information from executives of western countries was adopted by the provincial leaders in 1999.

Senior executives from elite companies, such as oil giant BP Amoco, telecom provider Lucent Technology and the retailing giant Wal-Mart, outlined the future trend of Guangdong's economy.

Richard McGinn, chairman and chief executive officer of Lucent Technology, told leaders in Guangdong that in building new optoelectronics and communications integrated circuits systems, the company is seeking a partnership from Guangdong.

The company proposed the idea of building an optoelectronic valley in the province with other big telecom providers, such as Nortel and Siemens last year.

With one year effort, the foundation of the valley has taken shape. Construction of the "optoelectronic valley" is high on the agenda in the province's newly-deployed five-year comprehensive economic and social development plan (2001-2005).

At the meeting, Governor Lu Ruihua told the foreign guests that Guangdong will focus on pillars industries towards the next century, which include electronic information industry, electric and machinery industry and oil exploration and refining industry.

Eight of his 25 foreign advisors, eight are from the IT industry.

The executives brought forward advice ranging from a freer market atmosphere, transparency of the government's administration, environmental-friendly energy, state enterprises reform and

liquidation of bad loans.

Cheng Chuanlie, vice executive manager of TCL, a leading electric appliances company, said that the western entrepreneurs suggested a vigorous force of innovation, which is expected to give an extra boost to Guangdong's economy.

Taking up one tenth of the country's overall economic growth, Guangdong's robust economy has been greatly benefited by foreign investment, reaching about more than US$120 billion in total.

Oil companies have shown their interests in oil refining projects in Guangdong.

A month before the meeting, Royal Dutch/Shell Group signed a contract on a 4 billion-dollar petrochemical complex to be built in Guangdong's Huizhou City on coast.

The joint venture's first phase will take five years to complete and aims to produce 800,000 tons of ethylene and 2.3 million tons of other petrochemical products annually.

It will bring 8 to 10 billion yuan (963 million to US$1.2 billion) of investment to the Daya Bay region, where it is located.

A day before the meeting, BP Amoco added 350 million US dollars of investment to its petrochemical project in Zhuhai City, one of China's special economic zones.

Sir John Browne, BP Amoco's chief executive, told the meeting that the move signifies his company's consistent confidence in Chinese market.



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