The largest port city in Northeast China's Liaoning Province is looking to expand its infrastructure to give the engine of regional economic development more room to manoeuvre.

Mayor of Dalian Li Yongjin told a press conference over the weekend that the city plans to invest 10 billion yuan (US$1.2 billion) in improving the city's transportation systems over the next two years.

A 30-kilometre-long traffic system, linking Dalian's downtown area with the Jinshitan National Tourism Resort, will be completed next year, Li said.

Also on the horizon are enlargement of the airport, restructuring of the railway station and construction of an oil wharf.

"We must be prepared to seize the opportunities presented by the economic co-operation in the Asia-Pacific region and China's expected entry into the World Trade Organization (WTO) as early as late this year," Li explained.

Last week Dalian just hosted the Asia-Pacific Economic Co-operation Third Senior Officials' Meeting (SOM III) and won high praise from attendants for its ideal living and investment environment.

So far more than 8,000 foreign-funded enterprises have settled down in the city, with investment mostly coming from Hong Kong, Japan, the United States and the Republic of Korea (ROK).

Those enterprises have helped the city become the most dynamic area in Northeast China, Li said, noting that Dalian's export volume last year reached US$5 billion, half of all exports in Liaoning Province as a whole.

During the Ninth Five-Year-Plan period, Dalian spent more than 30 billion yuan (US$3.6 billion) on urban construction and was commended by the United Nations Environment Programme (UNEP) as a ''Global 500'' model for its achievements in environmental protection.

But still there are economic challenges ahead for Dalian, according to the mayor.

He explained that, although the majority of the city's enterprises have adapted to the world market, many have failed to meet the challenges and need reshaping.

The mayor added the city will spend money to restructure its traditional industries, which include shipbuilding, diesel locomotive manufacturing and chemical production.

The city will also provide financial support for expansion of market-oriented products and the introduction of new technologies.

Continuing its tradition of environmental protection, Dalian has moved a total of 105 factories out of town in the past few years and will continue to do so in the next few.

Plants which produce products harmful to the environment will be shut down as soon as possible, Li said.

"After another 10 years of construction Dalian will be modernized," Li predicted, adding he hopes per capita GDP will reach US$7,000 by then.

(China Daily 08/27/2001)