Huang Weihong, director of the Guangdong Provincial Development Planning Commission, explained that since some uncertain factors exist in international environment, it is of great importance to propel local economic growth by exploring the domestic market and enlarging domestic demand.

According to Huang, Guangdong has decided to start or continue construction of 60 major projects this year, and the investment into infrastructure will amount to 440 billion yuan (US$53.01 billion).

In the meantime, the province will further lift restrictions on private investment, which will be encouraged for technical upgrading of state-owned enterprises in the province.

More mergers and transfers of enterprises of diverse ownership will also be encouraged in Guangdong, Huang said.

The investments in fixed assets in Guangdong totaled 400 billion yuan (US$48.19 billion) last year, up 13 percent from the previous year.

Efforts should also be made to explore the domestic market to further enlarge the market penetration of Guangdong-made commodities.

In addition to holding trade talks in a number of major Chinese cities, the provincial government will encourage local businesses to invest in or set up marketing or after-sale service centers in the Chinese regions outside Guangdong.

The province's retail sales of consumer commodities will rise by 10 percent to hit 551.1 billion yuan (about US$66.4 billion) this year, Huang predicted.

Guangdong Province, which has been testing place for China's reform and opening-up, has witnessed fast economic growth in the past two decades, especially in the export-oriented economy.

(Xinhua News Agency January 20, 2003)