The "green economy" refers to the sectors of organic food, traditional Chinese medicine, bio-pharmaceuticals, flowers and other biological products that use natural resources.

"Yunnan is very rich in natural resources," Vice-Governor Chen Xunru said in a recent interview.

In Yunnan, there are more than 6,000 kinds of medicinal plants, accounting for 51 per cent of the country's total and making the province the country's largest biological resource development base, Chen said.

As a result, the local government has decided to vigourously develop its "green economy" and choose natural medicinal products and health-care products as pillar industries for its economic growth in the 10th Five-Year Plan period (2001-05), he said.

A series of preferential policies have been drafted by the local government to help local enterprises foster brand name products that are competitive in both domestic and international markets.

Chen said foreign companies are welcome to invest in the province's "green economy" projects.

The "green economy" campaign is also expected to diversify the economic structure of the province which has long been famous for its tobacco industry.

As more people become aware of the hazards of smoking and the external environment for cigarette producers becomes more challenging, Yunnan is encouraging its cigarette factories to invest in the "green economy" to diversify their production. Some projects have already been set up by cigarette factories in the province, Chen said.

According to the province's plans, the ratio of local industrial output value that the tobacco industry produces will be gradually reduced while the "green economy" sector will increase its economic growth.

To promote co-operation and trade in the sector, the provincial government and the Ministry of Health have approved plans for the Second China International Health Care Festival to be held in Kunming, capital city of the province, between October 18 and 22 this year.

More than 1,000 domestic and overseas health care companies are expected to attend the festival to explore trade, co-operation and investment opportunities.

Peng Yu, vice-minister of the Ministry of Health, predicts a strong growth trend for China's health care industry and great potential for growth in the consumption of health care products.

(China Daily 06/04/2001)