Government sources of Ningbo say that the city is setting its sights on becoming the "Silicon Valley" of the southern Yangtze Delta region by 2007.

The coastal city, located in the East China's Zhejiang Province, one the nation's most dynamic areas, will plough 10 million yuan (US$1.2 million) annually into supporting the software sector.

"We will offer more favorable policies and a good investment environment alongside strengthening the existing information industry," said Tao Chengbo, vice-director of Ningbo's Informatization Office.

The information sector is becoming one of the city's core industries.

"Leading with technological innovation, the traditional industrial processing industry will find an innovative way of further developing," said Tao.

According to the Ningbo Statistics Bureau, the city's information industry has enjoyed rapid growth in recent years, with the information sector achieving an added value of 18.7 billion yuan (US$2.2 billion) in 2003 -- an increase of 25 percent.

Ningbo's geographical location, good infrastructure and its well-developed manufacturing and high-tech sectors give the city the upper hand in its bid to become the high-tech industry's research and production base, said Tao.

Ningbo, China's second-largest port, enjoys the reputation of being an important industrial base, boasting textile, garment, machinery and large-scale harbor-based industries.

The under-construction cross-sea bridge, which will cut the traveling time between Shanghai and Ningbo to two hours, will turn Ningbo into an increasingly important economic center in the Yangtze River Delta region, Tao added.

"One of our aims is to attract foreign investment and high technology in order to develop the local information economy," said Tao.

(China Daily May 13, 2004)