The increase was the second largest only after the United States, whose investment in the economically advantaged Guangdong province in south China more than doubled the figure for 2001.

According to the paper, Guangdong will continue to welcome investment from Macao and Hong Kong in its mountainous areas and eastern and western parts, especially in the fields of labor-intensive industries and processing of local products.

The province has vowed to cement cooperation with the two special administrative regions (SARs) in terms of electronic information, software technology, biological engineering, new materials and environmental protection.

The provincial government will simplify investment approval procedures and serve the investors with the highest efficiency and facilitate passenger flow at Shenzhen-Hong Kong and Zhuhai-Macao ports, the paper said.

In 2002, overseas direct investment in Guangdong jumped 26.6 percent from a year earlier to US$13.11 billion. Investment from Hong Kong, Taiwan, Britain and Japan grew 26.2, 57.6, 60.7 and 37.2 percent, respectively.

(Xinhua News Agency January 16, 2003)