Liu told Edward Barnholt, the visiting president and CEO of the US-based Agilent Technology Company, that the high technology industry had already been chosen as a major prospect for the city to develop.

Beijing government will in 2002 refund 80 percent of taxes collected from high-tech companies in 2001, Liu said.

In 2001, the software sector alone received 800 million yuan (US$96.39 million) in rebates from the government.

Liu said that the growth rate of Beijing's high tech industry was 18 percent in 2001.

Despite being home to the Zhongguancun High-Tech Park, the largest Silicon Valley in China, Beijing is planning to build another six software institutions.

Barnholt said that he was confident of the city's future and they would invest more in the years to come.

(People's Daily March 28, 2002)