They said at the Western Forum of China that efforts were in full swing to crack down on random administrative charges, build up business credits and revamp regulations in favour of foreign business.

Shaanxi Province and Chongqing Municipality cut almost half their red-tape, trimmed redundant offices and curbed unreasonable levies at the beginning of this year while increasing access for foreign businesses to lodge their complaints.

Similar changes are also being carried out by other members of the hinterland belt, officials said.

Zhao Gongqing, vice-mayor of Chongqing, said justice and credit were the most pressing issues facing the western regions.

"Some foreign investors are hit by breaches of contract by their Chinese partners or duped by some profiteers, as their interests are not addressed well by the current legal framework," said Zhao, also an economic expert.

"We need to redress the laws to incorporate their vested interests."

Meanwhile, a reliable credit culture is desired but far from becoming reality.

The unified call signalled a sea change in thought among provincial heads who have been under fire for an overwhelming reliance of tax cuts and preferential policies from Beijing.

Top policy-makers on the go-west campaign have urged local chiefs to centre on those concerns which have been isolated as the biggest obstacles preventing investment in the hinterland.

The region, covering 70 percent of China's land, needs foreign capital to boost the year-old economic expansion scheme and bring 300 million residents into prosperity.

"Without a good credit system, how can you convince your guest to do business with you?" said Wang Shouting, executive vice-governor of Southwest China's Guizhou Province.

The western region has pinned high hopes on the "go-west" campaign - spearheaded by the central authorities - to reinvigorate its sluggish economy, where per capita GDP is only one eighth of that of Shanghai or Beijing.

(China Daily 09/05/2001)