Guizhou Province in southwest China will be developed into one of the most important research and production bases for China's IT industry, senior provincial officials said Thursday.

"We have adopted a new economic development policy - technology innovation coming first and industrial processing second," said Chen Dawei, vice-governor of the province, at the opening ceremony of the two-day International Conference on the Guizhou Development Plan for Innovative Knowledge-based Economy.

"As a hinterland province, Guizhou is not competitive with China's coastal provinces in traditional processing industries, due to its unfavourable transportation condition," Chen said.

"But we can devote ourselves to core high-tech with intellectual property rights (IPRs) and that will be a breakthrough in Guizhou's economic take-off."

Guizhou is attracting overseas talent and investors to establish three research and development (R&D) centres in hard disc drive (HDD), optical electronic (OE) chips and digital video and communication.

As well, six industrial bases will be established for HDD, optical electronics, digital video and communication, electronic components, biological engineering and new materials.

"Besides the State's general investment guidelines in western development projects, we are also drafting 10 new preferential policies to attract overseas talent and investors and hope they will get the State's approval soon," said Zhang Yingfeng, director-general of the Guizhou provincial government's information industry department.

Currently, fees for land use can be exempted for high-tech enterprises with an investment of more than US$10 million in the Jinyang Knowledge-based Economic Industrial Zone in the provincial capital of Guiyang. Registration and licensing can be completed within seven working days, and no fees are charged.

"I am really amazed by the provincial government's commitment to and support for high-tech industry growth," said David Chu, president and chief executive officer of GS Magicstor Inc, which has opened a HDD factory in the province.

(China Daily September 19, 2003)