"With abundant natural resources, comparatively low costs, huge market potential, certain industry infrastructure and technology forces, the vast west region of China will become the new favorite of the foreign investors," Hu said at a great banquet sponsored by Thai business circle and local Chinese community in his honor.

Meanwhile, he said, "the Chinese government will give greater support to the west region and ease the limits for foreign investments there, while carrying out a package of simulative policy of finance, taxation foreign investment and trade, human resource, technology and education."

"Together, all these factors will create a more favorable environment for foreign businessmen to invest in China's west region," Hu remarked.

He also said that the accelerating of China's "west campaign" is a significant and strategic decision made by the Chinese government in the new century.

"In the coming five to ten years, we will further boost this grand and tough project, focusing on environment protection and construction, adjustment of industry structure, and development of technology and education," the Chinese vice-president said.

Touching upon the current economic situation in China, he said, "the country is now following the right path of development, after it shook off the bad effect of the Asian crisis."

He noted that the Chinese government made great contributions to solving the crisis and stabilizing the Asian economy by sticking to the non-depreciation policy of its currency.

"During the past three years, the government has been taking a series of methods to stimulate internal demand, keeping the annual economic growth rate above 7 percent," he stated.

The Chinese economy witnessed a 8.2-percent growth in the first half of this year, showing a strong recovery, he stressed.

(Xinhua)