"Diversified programmes to develop satellite towns are necessary," said Ren Xingzhou, deputy director of the Market Economy Research Department at the State Council's Development Research Centre, at the workshop in Hangzhou, Zhejiang Province.

"Our country is undergoing an urban explosion, which has thus resulted in many satellite towns beside big cities. Almost all of them were developed by local governments.

"However, due to the limited functions of the governments with their limited efforts and funds, most satellite towns have not yet come into full play."

Although most satellite towns have largely reduced the urban population, their levels of development still compares poorly with urban areas.

The lack of fast and convenient public transport systems, poor education centres and unsatisfactory medical, water and sewage-treatment facilities in some satellite towns have forced many people back into big cities.

"We suggest the introduction of more non-government capital into satellite town development, as well as the urbanization of the cities," said Dong Furen, a renowned Chinese economist.

"The private sector should be guided to take part in activities, such as building roads, bridges, establishing schools, medical centres and other infrastructure.

"They can even be invited to scheme the whole plan of a satellite town."

Experts also vowed to move some industries to satellite towns, such as the service, food, machinery, electronic, building material and tourism sectors, so a considerable number of residents do no need to travel between the satellite towns and large cities every day, greatly reducing heavy transport.

"A complete service system should be set up, including businesses, education, entertainment, telecommunications and so on," Ren said.

(China Daily October 28, 2002)