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The local government of Xi'an, the capital of Northwest China's Shaanxi Province recently announced its latest decision on pillar industries expected to be backed by foreign investment.

The high-tech sector involving information technology, pharmaceutical production and the development and research of energy-saving equipment tops the list for projects seeking overseas investment.

Also, traditional industries involving textiles, food and beverage processing and chemical products manufacturing are expected to be renovated with overseas investment, said Huang Xingshen, vice-mayor of Xi'an.

Public facilities for transportation, telecommunications, water, heat and electricity supply and garbage disposal are also major areas seeking foreign investment, he said.

Farmland irrigation, agricultural goods processing and the improvement of wasted area are also high on the list for projects to be developed by foreign investment.

Huang also announced that foreign investors are also allowed to establish banks, insurance companies, tourism agencies, shops and foreign trade firms in the city.

They are also encouraged to establish joint venture accounting firms, law firms, engineering designing companies and cargo logistics businesses in the city.

Foreign investors are also welcome to play a part in the restructuring of State-owned enterprises through purchasing, merging and buying stocks, he said.

Xi'an, capital of Shaanxi Province, is a centre of science, culture, education, commerce, finance and industry in Northwest China. Its gross domestic product (GDP) enjoyed annual increases of over 13 per cent in the last decade.

The latest statistics from the Xi'an city government showed investors from 58 countries and regions have established about 2,560 enterprises in Xi'an. The project involved combined investment of US$9.89 billion. About 68 per cent of the projects are engaged in industrial production.

Nineteen of the world's top 500 enterprises, including ABB of Sweden, Mitsubishi, Toshiba and Fujitsu of Japan, Coco-Cola of the United States have established 21 companies.

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