Tianjin: This North China municipality, once the biggest industrial base in the region, is vowing to restore its glory with private sector investment and development and closer relations with Beijing.

"The private economy is still quite backward here, but when it comes to institutional reforms, we have decided to improve our efforts and see good results," said Tianjin Mayor Dai Xianglong yesterday.

He spoke at the Tianjin Economic Forum held by his city and the All-China Federation of Industry and Commerce that private firms should not only complement the local economy, but play a key element.

The mayor said his municipality would expand the scope of investment to attract private enterprises and allow them to enter areas such as modern manufacturing, high-tech industry projects, financing, and public utility construction programmes.

"It is time to let private businesses participate in industries which are open to foreign investment, and even to give them preferences," Dai said.

He pointed out that private businesses should be allowed to invest in State-owned construction companies.

Construction of bridges, expressways and big infrastructure projects should also be open to private firms, he added.

The city can also benefit from its closeness to Beijing - being near important decision-makers, funds, technology and human talent. The Tianjin mayor, the previous governor of the central People's Bank of China, also called on private companies playing a bigger role in the finance sector.

He suggested private companies be encouraged to participate in restructuring rural credit co-operatives or setting up shareholding commercial banks.

Dai said his city would list about 40 projects worth US$1 billion for sale.

(HK Edition 09/11/2003 page7)